The Ministry of Finance under the Queen je of the United Kingdom released a document detailing a series of proposals for the crypto community. After consultations, the Ministry of Finance will launch a “supervisory approach to crypto assets and stablecoins” in 2021 after the turmoil of Brexit.
Pay special attention to stablecoin supervision
According to the official announcement, the negotiation is mainly aimed at stablecoins to collect investment and wholesale use. The Ministry of Finance of HM expects to gather insights from “industry and stakeholders” in the encryption field by March 21, 2021.
In 2018, the British government established an inter-departmental task force to assess the impact of the “rapidly developing crypto asset market” on the economy.
For this motivation, the UK Treasury wants to “ensure that its regulatory framework can take advantage of new technologies to support innovation and competition, while reducing risks to consumers and stability.”
The Ministry of Finance explained in the document why they paid special attention to stablecoins after the start of the working group:
Two years later, the landscape is changing rapidly. So-called stablecoins can pave the way for faster and cheaper payments, making it easier for people to pay or save money. More and more evidences show that DLT can bring significant benefits to the capital market and may fundamentally change its mode of operation.
The government constantly monitors the cryptocurrency market to develop “appropriate” regulatory methods
According to a document signed by John Glenn, the Minister of Economic Affairs at the UK Treasury Department, this approach marks the “first step in the consulting process” of the crypto industry. They also hope to discover the “most serious risks” and emphasize the importance of risk-oriented supervision methods.
Minister Glenn commented in the document:
As the market continues to mature, the government will continue to actively monitor emerging risks. We will be ready to take further regulatory measures at any time to ensure that the market is available to individuals and companies doing business in it.
On January 11, 2021, the British Financial Conduct Authority (FCA) issued a warning to investors on high-risk cryptocurrency investments and the surge in related scams in the industry.
What do you think of the British government’s documents for the encryption industry? Let us know in the comments section below.
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