Will it be possible to use USDT or USDC just like pounds?
A bill is ready in the United Kingdom that seeks to regulate stablecoins as a means of payment. The aim is to match the emerging technology with existing financial services rules.
Regulating Stablecoins
The UK Treasury told us that they want to regulate certain types of stablecoins. The bill – through which the ministry seeks to see stablecoins as a means of payment – should ensure that the current legislation is phased out.
This is because the current legislative framework still stems from the EU, and the UK wants to move away from this with this bill. If this proposal passes, the UK could gain a head start in the development of a regulated crypto and stablecoin system.
MiCa
In the EU we have a similar proposal; MiCA. This stands for Markets in Crypto Assets and is a set of rules and guidelines for EU member states.
Both MiCA and the UK’s most recent bill are not intended to adopt crypto completely, but is more intended as protection for financial stability.
Stablecoins may in fact pose a threat to this financial stability. Since the collapse of TerraUSD, stablecoins no longer have the positive name they used to carry. “Today is a milestone day for financial services in the UK,” Nadhim Zahawi, chancellor of the UK Treasury, said in the statement.
Sandboxes
So-called ‘Sandboxes’ will also be established in the UK for this regulation. For those who know Sandbox only through crypto; this stands for a closed virtual space where programs can work without disturbing other processes. A kind of safe place for processes to run as securely as possible.
The Sandbox and the regulatory framework should ensure that new technologies can be tested safely in an environment that does not interfere with the current system. This is therefore likely to be kept out of the public eye.