United Kingdom HM Treasury is committed to establishing a secure framework for the use of stable coins. The FSM Bill plans to regulate crypto assets.
This Friday, the United Kingdom’s HM Treasury announced the Edinburgh Reforms to drive growth and competitiveness in the financial services sector. HM Treasury is an abbreviation for Her Majesty’s Treasury which is the economic and financial treasury of the government.
United Kingdom To Regulate The Use Of Crypto Assets And Stablecoins
The Edinburgh reforms refer to the Financial Services and Markets (FSM) Bill which aims to “establish a secure regulatory environment for stable coins – which can be used for payments.”
In order to regulate not only stablecoins, the government is planning to bring “a wide range of investment-related crypto asset activities under regulation”. According to a June 2022 report by the United Nations Conference on Trade and Development (UNCTAD), more than 5% of the UK population owns cryptocurrencies. Therefore, regulations are considered necessary to protect citizens, especially after the collapse of FTX, which created chaos in the crypto industry.
In addition, the government wants to empower the Financial Conduct Authority (FCA) through regulations. The FCA will take measures such as banning foreign companies and limiting crypto advertising. They plan to come up with regulations to protect consumers from fraud, mismanagement and false advertising. But, the community believes that the ban on advertising will reduce the revenue of the companies which are already badly hit by the bear market.
The reform also mentions the government’s plan to consult with the Bank of England on a UK retail CBDC. Recently, India launched the Digital Rupee retail pilot on 1 December.
Crypto-friendly Prime Minister Rishi Sunak
UK PM Rishi Sunak in April Tweeted, “We are working to make the UK a global crypto asset hub.” Thereafter, he was serving as the Finance Minister of the nation. The vision of the UK becoming a global crypto hub could be challenging without regulations.
Some believe that Rishi Sunak is a crypto-friendly prime minister and therefore will not do it”bad stuff“With the rules. But, other to accept He is more “pro CBDC” rather than “pro-crypto”.
community guessed With the UK leading the way in crypto regulations, more countries may follow in regulating the asset. India’s Finance Minister Nirmala Sitharaman wants to prioritize crypto regulation at the G20 summit as the nation holds the summit’s presidency for a year.
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