BoE Plans For Systemic Stablecoin Regime
According to a recent consultation response, the Bank of England intends to move forward with its proposal for a systemic stablecoin regime.
The consultation emphasised that the Financial Conduct Authority and the Bank of England will both oversee systemic stablecoins. The proposal was well received by survey respondents. They also decided to include systemic stablecoins in the accountability framework.
The consultation also clarified how the government backed the reform tenet of “same risk, same regulatory outcome.” The government also acknowledged the need for restrictions to lessen the risks stablecoins pose to the economy’s financial and monetary stability.
The UK government plans to assess its strategy with national regulators after enacting the Financial Services and Markets Act 2023 in June. The bill grants authorities greater control over the financial sector, including the crypto sector. Amendments were made to treat all crypto activities as regulated and control cryptocurrency advertisements. The bill also includes stablecoins under payment rules.
(With inputs from Shikha Singh)
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