The United Kingdom is poised to introduce stablecoin regulations within the next few months, according to Dante Disparte, the global head of policy at Circle. During an interview with CNBC, Disparte expressed confidence that formal laws governing stablecoins would be enacted soon.
“I think we’re within months, not years,” Disparte said, underscoring the U.K.’s upcoming focus on stablecoin regulations.
U.K.’s Cautious Approach to Crypto Regulation
Disparte highlighted the U.K.’s cautious regulatory approach toward the crypto industry, suggesting it helped the country avoid some of the risks that led to failures, such as the collapse of FTX in 2022.
“You could argue that the U.K., along with other countries, was vindicated in not moving too quickly to regulate the crypto industry,” he said.
However, Disparte emphasized the growing urgency for stablecoin regulations as the global crypto landscape continues to evolve. He also noted that the U.K. risks falling behind regions like the European Union, which has already implemented stablecoin regulations under the Markets in Crypto Assets (MiCA) framework, and Singapore, which also established formal laws for stablecoins.
“In the spirit of protecting the U.K. economy from excessive risk, there’s also a point where you risk stifling job creation and the industries of the future,” Disparte added.
Potential Benefits of Stablecoin Regulation
Disparte outlined several benefits of stablecoin regulation, including advancements in wholesale banking, real-time payments, and the potential digitization of the British pound. The Bank of England is currently exploring the launch of a digital pound, often referred to as “Britcoin.”
Despite the absence of a regulatory framework, the stablecoin market remains a multibillion-dollar industry, with major players like Tether’s USDT and Circle’s USDC playing vital roles in the global financial system.
U.K. Introduces New Crypto Legislation
In September 2024, the U.K. government introduced a new bill aimed at clarifying the status of digital assets, including non-fungible tokens (NFTs), cryptocurrencies, and carbon credits, as recognized forms of personal property under U.K. law.
The Financial Conduct Authority (FCA) has taken a leading role in overseeing crypto activities, with a focus on anti-money laundering and consumer protection measures. Last year, the FCA introduced rules requiring crypto firms to register with the regulator and ensure their marketing materials are approved by an FCA-authorized firm.
Major exchanges like Coinbase, Revolut, and Binance have already updated their platforms to comply with these regulations.
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