According to reports, the United Kingdom is now set to unveil a bill geared towards regulating the usage of stablecoin for payment. The UK Finance Minister, Nadhim Zahawi intends to officially present the bill before the parliament to on Wednesday. The minister has drummed support for the usage of stablecoins for payment. However, the usage must align with the new financial services and markets bill.
Notably, the bill possesses the tendency to help the UK initiate a highly competitive finance services sector. As revealed, the UK ministry of Finance sees cryptocurrencies and stablecoins as an effective instrument in revamping the financial landscape. More so, the ministry believes the assets tends to place the country amidst the leaders in virtual finance.
Additionally, Zahawi hinted that the bill tends to help protect consumers. According to him, it ensures appropriate compensations for victims of exploitations. More so, the minister remarked that it serves as a technique to avail protective access to case by millions of subscribers.
Furthermore, the bill entails consumer protection, marketing regulations and policies relating to present electronic money rules. As observed, the bill mandates crypto firms, particularly stablecoin offerers to register with Financial Conduct Authority (FCA).
Also, the bill, as enshrined standardize the utilization of stablecoins for payments. This, according to the ministry remains necessary in the wake of the increase in crypto adoption. In addition, it reportedly navigate a road map on the adoption of stablecoins.
Similarly, the UK ministry of finance affirms the capacity of stablecoins to avail various opportunities into the financial markets. This, according to the ministry makes the markets transformative and productive. Similarly, the Finance Ministry believes it helps delivers innovative services, enhances operational efficiencies, reduces risks.
Call for Stablecoins regulations
Recall that the crash of Terra stablecoins has continued to ferment calls for a full regulation of the asset. The horrific crash of the TerraUSD stablecoin overwhelmingly affected the crypto market. Prior to the crash, stablecoin enjoyed a remarkable growth in the early periods of 2022. The growth, as reported, manifested owing to the migration of from the unstable crypto space to stablecoin, a more stable space.
However, the collapse of Terra stablecoin last May truncated the growth streak of the assets. The USD asset reportedly fell prey to an algorithmic stablecoin. This development resulted in the loss of over 40 billion USD. The aftermath of this crash heightened the need for a total regulation of the assets.