• Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Monday, August 8, 2022
Online Crypto College
Advertisement
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
  • Blockchain
  • Regulation
  • Trading
  • Learn Crypto
    • Free Crypto Training
    • iCoinPro Crypto Trading
No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
  • Blockchain
  • Regulation
  • Trading
  • Learn Crypto
    • Free Crypto Training
    • iCoinPro Crypto Trading
No Result
View All Result
Online Crypto College
No Result
View All Result

Stablecoins Face U.K. Regulation Following UST Collapse

May 31, 2022
in Regulation
Reading Time: 3 mins read
A A
ShareShareShareShareShare

Related articles

Regulation is inadequate protection against greed

August 7, 2022

Shark Tank Star Kevin O’Leary Buys the Bitcoin Dip — Says Crypto ‘Desperately Needs Policy’ – Regulation Bitcoin News

August 7, 2022

Key Takeaways

  • The U.K. government wants to address the risks associated with stablecoins.
  • A new consultation paper argues that existing regulatory regimes can be applied to unregulated digital payment assets.
  • The new proposal comes after the collapse of the UST stablecoin earlier this month which cost investors billions.

Share this article

The U.K. government has published a paper exploring ways to mitigate the financial stability issues associated with digital payment assets. The development comes after the collapse of UST, previously the third-largest stablecoin, earlier this month.

U.K. Government Addresses Stablecoin Concerns

The U.K. government is making further progress toward regulating stablecoins. 

In a new consultation paper published Tuesday, Her Majesty’s Treasury has proposed using existing regulatory regimes to help reduce the risks associated with the potential collapse of stablecoins and other digital settlement assets. 

The three-part paper started by reiterating the U.K. government’s commitment to cryptocurrency innovation and its intention to recognize crypto stablecoins as a means of payment in law. However, to realize this vision, the paper argues that it is “necessary to ensure appropriate, and proportionate, tools are in place to mitigate the financial stability issues that may materialise should a firm that has reached systemic scale fail.”

The government’s proposed solution is to use existing regulatory regimes to protect consumers from payment firm insolvency of digital settlement assets. The existing rules, known as Special Administration Regimes (SARs), would give the Bank of England continued regulatory oversight over stablecoin issuers and verify that their payment infrastructure systems are robust. They would also ensure that firms make decisions that are in the best interests of their customers and the British public. 

Currently, two types of SARs are used to help mitigate digital payment risks: the Financial Market Infrastructure Special Administration Regime (FMI SAR) and the Payment and E-Money Special Administration Regime (PESAR). The paper argues that the FMI SAR would be the most appropriate and states that the government intends to legislate as such when parliamentary time allows. The report also invites feedback on the proposal with a deadline of Aug. 2.

At the beginning of May, the crypto market suffered a sharp drawdown caused by the collapse of Terra’s algorithmic UST stablecoin. UST first deviated from its dollar peg on May 9, and within 72 hours, it had crashed by over 50%, costing investors billions as its associated LUNA token also plummeted. The event sparked debate about the safety of stablecoins, with regulators in the U.S. and worldwide weighing in on the collapse. 

Today’s consultation paper also makes a loose reference to the UST crash, stating that “events in cryptoasset markets have further highlighted the need for appropriate regulation to help mitigate consumer, market integrity, and financial stability risks.” Though the UST collapse has doubtless acted as a catalyst for the U.K. government to act on stablecoins, the paper didn’t clarify whether it would influence the severity of its regulation policy. 

Disclosure: At the time of writing this piece, the author owned ETH and several other cryptocurrencies.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Dogecoin Co-Creator Slams Elon Musk, Calls Him A ‘Grifter’ Who Can’t Code

Next Post

Crypto Fear and Greed Index Shows ‘Extreme Fear’ and Shaky Sentiment Persist – Market Updates Bitcoin News

Related Posts

Regulation is inadequate protection against greed

August 7, 2022

There also needs to be a concerted effort to educate the consumer so that she is better informed about the...

Shark Tank Star Kevin O’Leary Buys the Bitcoin Dip — Says Crypto ‘Desperately Needs Policy’ – Regulation Bitcoin News

August 7, 2022

Shark Tank star Kevin O’Leary, aka Mr. Wonderful, says he has bought the dip during the recent cryptocurrency market sell-off....

This Week in Coins: Companies Report Big Bitcoin Impairment Charges but Markets Mostly Shrug

August 6, 2022

This week in coins. Illustration by Mitchell Preffer for Decrypt While long-term crypto holders are, broadly speaking, likely to be...

Why Europe Crypto Regulation Is Worrying US Officials

August 6, 2022

Patrick Hansen, a crypto venture advisor and expert on European policy, made predictions about the timeline of two landmark EU...

UC Berkeley’s Chief Innovation Officer Talks Interest Rates, Crypto, and More

August 6, 2022

Rich Lyons is the first chief innovation and entrepreneurship officer for the University of California, Berkeley. Before that, he spent...

Load More
Next Post

Crypto Fear and Greed Index Shows 'Extreme Fear' and Shaky Sentiment Persist – Market Updates Bitcoin News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ethereum Options Surpass Bitcoin Ahead Of Upcoming Merge

August 2, 2022

Voyager CEO reportedly made $30M from stock sales

August 3, 2022

Revolut Launches Cryptocurrency Exchange Services in Singapore

August 5, 2022

SEC Charges 11 in Crypto Ponzi and Pyramid Sc…

August 1, 2022

Celsius investors owed $4.7 billion beg judge to recover life savings

August 2, 2022

About Us

This is an online news portal that aims to provide the latest Crypto news, Altcoins, blockchain, regulations and much more stuff like that around the world. Feel free to get in touch with us!

What’s New Here!

  • Ethereum Whales Targeting Three Very Surprising Altcoins
  • Regulation is inadequate protection against greed
  • For 38 Consecutive Days Ethereum Gas Fees Record the Lowest Rates Since 2020 – Bitcoin News

Newsletter

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 - OnlineCryptoCollege.com - All rights reserved!

No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
  • Blockchain
  • Regulation
  • Trading
  • Learn Crypto
    • Free Crypto Training
    • iCoinPro Crypto Trading

© 2018 JNews by Jegtheme.

  • bitcoinBitcoin(BTC)$23,311.001.24%
  • ethereumEthereum(ETH)$1,705.620.63%
  • tetherTether(USDT)$1.000.36%
  • usd-coinUSD Coin(USDC)$1.00-0.11%
  • binancecoinBNB(BNB)$323.622.52%
  • rippleXRP(XRP)$0.3735180.20%
  • Binance USDBinance USD(BUSD)$1.00-0.04%
  • cardanoCardano(ADA)$0.533.18%
  • SolanaSolana(SOL)$41.001.95%
  • polkadotPolkadot(DOT)$8.772.60%
  • dogecoinDogecoin(DOGE)$0.0694000.55%
  • AvalancheAvalanche(AVAX)$28.006.14%
  • Shiba InuShiba Inu(SHIB)$0.0000120.76%
  • Lido Staked EtherLido Staked Ether(STETH)$1,645.590.56%
  • daiDai(DAI)$1.000.16%
  • matic-networkPolygon(MATIC)$0.91-0.05%
  • tronTRON(TRX)$0.0699490.33%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$23,290.001.23%
  • ethereum-classicEthereum Classic(ETC)$37.53-1.50%
  • OKBOKB(OKB)$18.24-0.64%
  • leo-tokenLEO Token(LEO)$4.89-0.83%
  • litecoinLitecoin(LTC)$61.110.05%
  • FTXFTX(FTT)$30.660.62%
  • UniswapUniswap(UNI)$8.891.04%
  • chainlinkChainlink(LINK)$8.285.76%
  • NEAR ProtocolNEAR Protocol(NEAR)$5.032.13%
  • CronosCronos(CRO)$0.1469851.26%
  • cosmosCosmos Hub(ATOM)$11.437.03%
  • stellarStellar(XLM)$0.1240731.92%
  • moneroMonero(XMR)$164.632.42%
  • FlowFlow(FLOW)$2.849.92%
  • bitcoin-cashBitcoin Cash(BCH)$141.870.09%
  • algorandAlgorand(ALGO)$0.3623853.30%
  • vechainVeChain(VET)$0.0315811.75%
  • filecoinFilecoin(FIL)$8.83-4.43%
  • ApeCoinApeCoin(APE)$7.22-0.82%
  • Internet ComputerInternet Computer(ICP)$8.23-0.26%
  • decentralandDecentraland(MANA)$1.070.79%
  • ChainChain(XCN)$0.085259-0.58%
  • HederaHedera(HBAR)$0.0776600.23%
  • QuantQuant(QNT)$127.173.86%
  • theta-tokenTheta Network(THETA)$1.709.03%
  • The SandboxThe Sandbox(SAND)$1.33-0.14%
  • tezosTezos(XTZ)$1.901.03%
  • Axie InfinityAxie Infinity(AXS)$18.611.32%
  • ElrondElrond(EGLD)$67.343.69%
  • AaveAave(AAVE)$102.252.85%
  • FraxFrax(FRAX)$1.000.06%
  • Lido DAOLido DAO(LDO)$2.46-4.79%
  • eosEOS(EOS)$1.240.96%