Connect with us
Active Currencies 14431
Market Cap $2,648,923,899,791.50
Bitcoin Share 50.02%
24h Market Cap Change $-2.63

Bank of England proceeds with plans for systemic stablecoin regime

2min Read

U.K.’s central bank plans to proceed with its proposals for a systemic stablecoin regime, as per a recent consultation response.

Bank of England proceeds with plans for systemic stablecoin regime

Share this article

  • With the Financial Services and Markets Act 2023, the Bank of England can set up a systemic stablecoin regime.
  • The government has stated that it will continue to assess its strategy with national regulators.

The Bank of England is planning to proceed with its proposal for a systemic stablecoin regime, as per a recent consultation response.

The consultation underlined that both the Bank of England and the Financial Conduct Authority will oversee systemic stablecoins. Respondents to the consultation received the proposal well. They also agreed upon extending the accountability framework to systemic stablecoins.

The consultation also explained the government’s support for the reform principle of “same risk, same regulatory outcome.” The government also recognized the need to set limits in order to mitigate financial and monetary stability risks posed by stablecoins.

Last year, the U.K. issued a series of consultations outlining how systemic stablecoins would be brought in under current rules and regulations. The stated goal of these actions was to return customer funds and implement measures for smooth operations, a major concern.

The government has stated that it will continue to assess its strategy with the national regulators.

The U.K. enacted the Financial Services and Markets Act 2023 into law in June. It also provided the central bank the authority to set up a systemic stablecoin regime.

The bill came to fore in July 2022. It provides authorities with greater control over the financial sector, including the crypto sector. While the law was being considered in Parliament, amendments were made to treat all crypto activities as a regulated activity and to control cryptocurrency advertisements. The bill also includes stablecoins for the purview of payment rules.

Crypto crimes remain a concern for U.K. authorities

In other news, the country’s National Crime Agency (NCA) is now expanding its digital assets investigation team. It recently put out a notification to hire four senior investigators for its Complex Financial Crime Team to work on crypto-related crimes.

The job entails investigating significant crypto scams, money laundering and other crypto-based crimes executed by organized crime groups.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.