UK Govt Set to Regulate Stablecoins Following Terra UST’s Collapse

Her Majesty’s Treasury, the UK Treasury Department is moving forward with plans to regulate stablecoin payments based on financial regulation outlined in the Queen’s speech on May 10, 2022. UK Treasury Ready to Regulate Stablecoins According to a report from the Telegraph, the UK government made a statement on Friday and that it stands ready to initiate further action on stablecoin regulation despite the recent crypto crash. However, their plan to regulate doesn’t include algorithmic stablecoins since they do not provide stability and will only consider stablecoins pegged to a fiat currency. “The Government has been clear that certain stablecoins are not suitable for payment purposes as they share characteristics with unbacked crypto assets. We will continue to monitor the wider crypto asset market and stand ready to take further regulatory action if required,” said a spokesperson from the Exchequer. “This will create the conditions for issuers and service providers to operate and grow in the UK, whilst ensuring financial stability and high regulatory standards so that these new technologies can be used reliably and safely,” the spokesperson added. US Regulator Too Called for Regulation Within its framework of electronic payments regulation, stablecoin issuers like Circle and Tether become subject to supervision by the UK’s market regulator. US lawmakers also called for the urgent regulation of stablecoins last week following ...