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Her Majesty\u2019s Treasury in the U.K. issued a document that details a series of proposals addressing the crypto community. With the consultation, the Treasury is initiating a \u201cregulatory approach to cryptoassets and stablecoins\u201d for 2021 following the Brexit turmoil.<\/strong><\/p>\n According to the official announcement<\/a>, the consultation mainly targets stablecoins to gather investments and wholesale uses. The HM Treasury expects to collect insights from the \u201cindustry and stakeholders\u201d in the crypto sphere until March 21, 2021.<\/p>\n In 2018, the British government launched a cross-authority taskforce to assess the impact of a \u201crapidly developing cryptoasset market\u201d in the economy.<\/p>\n With such motivation, the HM Treasury wants to \u201censure its regulatory framework is equipped to harness the benefits of new technologies, supporting innovation and competition, while mitigating risks to consumers and stability.\u201d<\/p>\n The Treasury explains in the document<\/a> why they put a special focus on stablecoins after the taskforce\u2019s launching:<\/p>\n Two years on, the landscape is changing rapidly. So-called stablecoins could pave the way for faster, cheaper payments, making it easier for people to pay for things or store their money. There is also increasing evidence that DLT could have significant benefits for capital markets, potentially fundamentally changing the way they operate.<\/p>\n<\/blockquote>\n <\/ins> <\/ins> <\/p>\n Per the document, signed by John Glen, Economic Secretary to the U.K. Treasury, this approach marks the \u201cfirst stage in our consultative process\u201d with the crypto industry. They also want to spot \u201cwhere the most serious risk lie,\u201d stressing the importance of a risk-led approach to regulation.<\/p>\n Secretary Glen commented in the document:<\/p>\n The government will continue to actively monitor new and emerging risks as this market continues to mature. We will stand ready to take further regulatory action to ensure the market is working for the people and businesses who operate in it.<\/p>\n<\/blockquote>\n On January 11, 2021, the U.K.\u2019s Financial Conduct Authority (FCA) warned<\/a> investors about high-risk crypto investments and the surge of related scams in the industry.<\/p>\nSpecial Focus on Stablecoin Regulation<\/h2>\n
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The Government Keeps Monitoring the Crypto Market to Set a \u2018Proper\u2019 Regulatory Approach<\/h2>\n
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