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The UK is close to introducing stablecoin legislation, according to Circle’s head of policy. The Stablecoin Regulation aims to bring the UK into compliance with the EU’s MiCa standards.
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Dante Disparte, Head of Global Policy at Circle, said in a recent interview with CNBC that the UK government will soon introduce legislation aimed at regulating stablecoins. He suggested formal legislation would be enacted “within months, not years.”
Disparte said the government’s cautious approach could have been beneficial in light of scandalous crypto incidents such as the FTX scandal and the collapse of TerraUSD (UST), but he believes the UK should take advantage of this potential benefit. To leverage technology while mitigating risks, timely implementation of stablecoin regulations is critical.
In contrast, the European Union is actively working on a comprehensive regulatory framework for cryptoassets, including stablecoins. Last year, the EU formally approved the Markets in Cryptoassets Regulation (MiCA), which aims to create a unified legal framework for cryptoassets across EU member states. The MiCA regulation is expected to be fully implemented by the end of this year.
Treasury Secretary for Economic Affairs Bim Afolami said earlier this year that the UK government is committed to legislation for stablecoins and crypto staking services.
“We’re very keen to get these things done as quickly as possible,” he said.
Afolami said at the Innovation Finance Global Summit in April that he had originally planned to introduce new laws on stablecoins, crypto staking, exchange and custody by June or July.
Although there are some delays, progress is still ongoing. Once the regulatory framework is in place, the Financial Conduct Authority (FCA) and the Bank of England will be responsible for supervision.
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