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U.K. Signals Crypto Engagement With Stablecoin Regulation, NFT

  • Government has faced pushback from industry over unclear rules
  • U.K.’s Glen says Britain wants to be part of crypto’s future
Economic Secretary to the Treasury John Glen

Economic Secretary to the Treasury John Glen

Photographer: Chris Ratcliffe/Bloomberg
Updated on

The U.K. announced a plan for government oversight of stablecoins and said it would consult on regulating a wider set of cryptoasset activities, signaling engagement with an industry it has clashed with at times as digital assets gain mainstream appeal.

The government will amend existing legislation for electronic payments to bring stablecoins --  a form of cryptoasset that is typically pegged to a fiat currency such as the dollar -- under the remit of regulators. Stablecoin-based payment systems will also be subject to appropriate competition regulation by the Payment Systems Regulator. Those stablecoin activities deemed to have the potential to be systemic risks will be regulated by the Bank of England, according to the report.