Technically, we already had Brexit last January. However, there’s currently (and till the end of December) an “adaptation period” for the citizens and companies, in which the government is working on their laws and relationship with the European Union for the future. And one of the things they’re preparing is new regulations for stablecoins and Central Bank Digital Currencies (CBDC).
According to a new announcement by Her Majesty’s Treasury (HM Treasury), the UK is planning to remain as “an open, attractive international financial centre”, and for that, they will deliver new measures regarding new financial technologies, such as stablecoins and CBDC.
Additionally, they’re looking forward to attracting new foreign investors and fintech companies to the country by providing clear and friendly regulations. Rishi Sunak, Chancellor of HM Treasury, commented about it:
“We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial centre. By taking as many equivalence decisions as we can in the absence of clarity from the EU, we’re doing what’s right for the UK and providing firms with certainty and stability”.
It’s said that the new measures can affect companies, banks, building societies, asset managers, and life insurers. Beyond the financial, the UK will also create the first Task Force on Climate-related Financial Disclosures (TCFD) to fulfill environmental objectives, which measures will start to be active in 2023. Probably this means that the measures about stablecoins will be ready by the same year.
Working to crypto this 2020
In the meantime, the Treasury will be in conversations with the Bank of England to consider the general emission of CBDC worldwide as a complement to cash, and how they’d work within the country.
Regarding the stablecoins, they consider these can make the payments cheaper and faster and plan to “harness the potential benefits” of it; although, taking the control of the possible risks by creating a framework with minimum standards for emission and use.
It’s worth mentioning that last month, the Financial Conduct Authority (FCA) banned in the country the financial cryptocurrency derivatives for retail investors since they don’t consider as safe these kinds of instruments.
So, the new regulations may arrive with some new bans for the riskier tools inside the world of CBDC and stablecoins, also very related to the highly-risky DeFi applications.
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