Since this month of January, the Government of the United Kingdom (UK) has been consulting with the British about a regulation proposal for the use of anchored cryptocurrencies or stablecoins in their territory.
The proposal is being submitted to a public evaluation that will end on March 21. Those interested can send their responses through an email enabled by the Department of the Treasury (HM Treasury, for its acronym in English). With it, it seeks that the UK regulatory framework «is equipped to reap the benefits of new technologies, supporting innovation and competition, while mitigating risks for consumers and financial stability ”, as stated in the document
All parties interested in the subject can participate in the consultation: cryptocurrency companies, trade associations, representative bodies, academics, law firms, and consumer groups.
The regulatory project was prepared by a working group created by the government in 2018, who in a report evaluated the risks and benefits posed by cryptocurrencies, along with the so-called distributed ledger technology (DLT).
For these discussions, we worked mainly on the most appropriate regulatory response. The document produced now go through the first stage of the consultative process and will serve as the basis for establishing a regulatory environment for anchored cryptocurrencies.
According to the Treasury Department “DLT could potentially transform financial markets and the infrastructures that support them”. They consider that the representation of assets in distributed ledgers could, in theory, “provide benefits such as more efficiency, greater liquidity, greater transparency and greater security.”
We are committed to maintaining this position. In practice, that means creating a regulatory environment in which companies can innovate, while maintaining the highest regulatory standards so that people can use new technologies reliably and safely. This is essential for confidence in the financial system in general.
John Glen MP, Secretary of the Treasury.
In this sense, the government ensures that it will continue to study the new risks that arise around cryptocurrencies, once this market matures. The plan is that, as new risks are detected, regulation will be adjusted taking into account the opinions issued by industry participants, consumers and authorities.