According to recent reports, the UK government’s HM Treasury gave out a document showcasing certain crypto community proposals. As such, Her Majesty’s Treasury is planning on starting a regulation method for the stablecoins and crypto assets in 2021. This occurrence is following behind the turmoil that gripped the government after Brexit.
Regulation on Stablecoins to receive centered focus
As per HM Treasury’s statement, the main reason for targeting stablecoins is to gain wholesale uses and investments. After that, it would continue gaining the insights of the stakeholders and the overall crypto industry. This is the Treasury’s main expectation, and they estimate this to proceed till 21 March 2021.
The government of Britain started a cross-authority taskforce back in 2018. This task force’s work was to evaluate the condition of the economy after changing the crypto-asset market impact.
The HM Treasury’s main aim is to make sure that their regulatory framework is in high-working condition. It should have enough power to use the advantageous elements of new technologies. Also, it needs to support competition and innovation while handling the problems consumers can face.
In this new document, the HM Treasury elaborates on the reason behind the high focus on stablecoins. It details that the crypto landscape is not stagnant, and stablecoins are faster and easier for users. Plus, it also allows for cheaper payments, and people can store their income easily. Plus, the DLT may potentially change the capital market operations and bring high benefits.
Monitoring of the crypto market
The document was ratified by the UK Treasury Economic Secretary. And it marks the beginning of the HM Treasury’s consultative process alongside the cryptocurrency industry. Not to mention, the focus would lie on the possible risks, and stressing on that would improve regulations. Moreover, the UK’s Financial Conduct Authority (FCA) issued a warning on 11 January 2021 for the investors. They stress the high-risk investments and scams in the crypto industry investors may encounter.