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April 05, 2022 | ECONOMY
Britain plans to regulate for some cryptocurrency amid global effort
- Britain has announced plans to regulate some cryptocurrencies as part of a larger strategy to become a worldwide hub for digital payments.
The government has announced plans to regulate some cryptocurrencies as part of a larger strategy to become a worldwide hub for digital payments, as authorities in the United States and also Europe race to develop crypto regulations.
Cryptocurrencies have skyrocketed in popularity, leaving policymakers around the world rushing to find out how to regulate them amid concerns that they could jeopardize financial stability and harm consumers.
Britain is open of crypto firms
“The United Kingdom” is open for business – open for crypto firms,” John Glen, the Treasury’s economic secretary, said in a speech Monday.
Treasury Secretary Rishi Sunak has also ordered the Royal Mint to create a digital collectible known as an NFT as an “emblem of the U.K.’s forward-thinking strategy.” “Glen is determined to take,” he stated.
Crypto supporters claim that the technology will make payments faster, easier, and more transparent. While detractors fear that it will be used for unlawful behavior such as money laundering and would also contribute to carbon emissions due to the high computer power required to conduct transactions.
The United States increased government regulation of cryptocurrency last month, while European Union lawmakers agreed on draft cryptoasset legislation.
Glen stated that the government intends to alter payment legislation to incorporate a type of cryptocurrency known as stablecoins. It will encourage issuers and also service providers to operate and flourish in the United Kingdom. Stablecoins are typically linked to the US dollar or a commodity such as gold. It will make them far less volatile than traditional cryptocurrencies such as bitcoin, which can fluctuate dramatically in value.
“This would also allow consumers to use stablecoin payment services with confidence,” Glen said, without naming the stablecoins that would be regulated.
The government is now considering "regulating a larger set of crypto activities”
There are more than 200 stablecoins, and two of the biggest are Tether and USD Coin. Stablecoins are often used to pay fees on cryptocurrency trading exchanges or send payments across borders, according to the report.
Sunak has asked the Royal Mint to generate a non-fungible token, or NFT, by the end of the summer. NFTs employ a type of encryption technology known as blockchain to produce one-of-a-kind digital things such as artwork or sports memorabilia, which may fetch millions of dollars.
There are also plans to explore the idea of using crypto technology to issue U.K. government debt.
According to Glen, the government is now considering “regulating a larger set of crypto activities. These includes trading of tokens like bitcoin,” with a consultation planned later this year.
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