Just-In: UK Introduces Bill To Regulate Stablecoins For Payments

Varinder Singh
July 20, 2022
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
UK Regulator

UK Finance Minister Nadhim Zahawi on Wednesday will be announcing support for using stablecoins for making payments under the long-awaited Financial Services and Markets Bill. The bill will help the country create a more competitive financial services sector post-Brexit.

UK Finance members believe crypto assets and stablecoins present huge potential in transforming the financial landscape and position of the country as a leader in digital finance.

The UK to Allow Stablecoin Use for Payments

UK Finance Minister Nadhim Zahawi will present the Financial Services and Markets Bill in the Parliament on July 20 to transform the UK financial services sector. He said:

“Consumers will remain protected, with legislation ensuring that victims of scams can be compensated while also acting to protect access to cash for the millions of people that rely on it.”

The bill will set standards for utilizing stablecoins for payments as crypto adoption rises in retail and other businesses. It will present a road map on the adoption of stablecoins, which could help drive crypto adoption in the UK.

The stablecoin regulation covers consumer protections, marketing rules, and decisions regarding amendments to existing electronic money laws. Moreover, crypto companies including stablecoin issuers and custody services providers need to register with the Financial Conduct Authority (FCA).

Furthermore, members of the UK Finance Ministry believe stablecoins offer opportunities to transform the financial markets into more agile and competitive. Also, delivering innovative products, increasing operational efficiencies, and reducing risk can help make adoption possible.

The UK has earlier expressed interest in turning the country into a global crypto hub. However, the recent resignations of crypto-friendly finance minister Rishi Sunak and senior Treasury official Jon Glen somewhat impacted the plans. In fact, Rishi Sunak has promised to make stablecoins as a means of payment.

UK’s Competitiveness in the Crypto Market

The UK has been lagging behind other countries in crypto regulations and adoption. However, the strict stance might change with the stablecoin regulation, put forward plans for crypto adoption.

Recently, the British government had called for consultation on the DeFi taxation. Legislators need to support stablecoins, at least for following the transactions for taxation purposes.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.