2023-11-06 17:45:16
The Bank of England and the British markets watchdog, the FCA, have detailed their proposals to regulate so-called stable cryptocurrencies, or “stablecoins”, in the United Kingdom, for example by subjecting them to authorization and guarantees.
“Stablecoins” are cryptocurrencies whose price is intended to be fixed. Some present themselves as being backed by the price of an existing currency – such as the USD Coin (USDC), which claims to be pegged to the dollar.
They aim for stability in the volatile cryptoasset market, some of which have experienced prodigious and sudden drops in value.
In particular, the BoE plans to regulate so-called stable cryptocurrencies in the United Kingdom if they are traded on a sufficiently large scale to pose a risk to “financial stability”.
The British monetary institution, which believes that “stablecoins” might make “payments faster and cheaper”, also seeks “to protect consumers” and “to prevent money laundering”.
For example, it plans to limit the quantity of these “stable” digital tokens that can be held by an individual.
For its part, the FCA is considering the possibility of requiring authorization from it for issuers of “stablecoins” in the United Kingdom.
These detailed proposals “underline the United Kingdom’s desire to position itself as a hub for innovation in the field of cryptocurrencies,” said Walid Koudmani, analyst at XTB, interviewed by AFP.
Last June, the British Parliament passed a new Financial Services and Markets Bill, which allows cryptoassets to be treated as a regulated activity within the existing regime in the United Kingdom.
For its part, the European Union is seeking to establish a separate regulatory framework for cryptoassets, through the Market Regulation (MiCA) and the Fund Transfer Regulation (TFR).
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