U.K. set to accelerate crypto sector and become web3 innovation hubTL;DR Breakdown
• National Secretary believes it is time for the crypto trade to move forward.
• Major agents in the UK government could regulate the Euro stablecoin.
Recently the leading authority in the UK government discussed the regulation of the crypto market’s stablecoins. According to reports, the secretary of the treasury announced that stablecoins like USDT or cEUR, having the same value as the US dollar and the Euro, respectively, are reliable cryptos that serve for virtual payments.
Even though the regulators in the UK have admitted to stablecoins’ usefulness in the financial world, they still seem to be hellbent on controlling them. The country’s secretary will seek control over stablecoins, just as they have tried with DOGE and Bitcoin for some time.
UK versus stablecoins
Stablecoins are a financial option that many crypto enthusiasts have profited from which operate with a 1:1 parity to the value of their local currency virtually. These tokens demonstrate that cryptos have a volatile scheme, and the technology can also develop non-volatile currencies.
According to reports, the UK government secretary is looking to investigate stablecoins further in a bid to regulate them. Eventually, the regulatory authority aims to create a scheme to use stablecoins correctly, avoiding security conflicts.
The authority in the UK government would also be attracted to stablecoins after billionaire Elon Musk said once again that the tokens are a good investment source. It is to be remembered that Musk has been one of the main promoters of decentralized currencies such as BTC.
Bank in England supports ​​the UK government
Following the UK government’s statement on stablecoins, the foremost bank in England spoke about the regulations for decentralized trading. According to the Bank of England, crypto could be a risk for the traditional financial market and, therefore, must be regulated.
A broker-in-charge at the BoE, Woods Sam, said that some domestic banks have become interested in crypto. However, the virtual market is still uncertain, so these fans would be in danger by commercializing it.
Specialists in the crypto-market suggest that the announcement by the UK government could be a direct response to Joe Biden‘s orders, the president of the United States. The latter suggested that crypto trading should be regulated. The national secretary might launch a robust crypto-boosting scheme under its own rules.
Last month the UK’s funding agency, FCA, asked major crypto companies to register with its system. After passing the deadline in March, the FCA ordered that all crypto companies that did not comply with the registration must close their operations within the country. It is likely that in the second quarter of 2021, both the FCA and the UK secretary will be stricter on crypto regulation.
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