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United Kingdom has prepared a bill on stablecoins as a means for payments

Thursday, 21 July 2022

New Bill on Financial Services and Markets to Boost UK Fintech Industry

The British Finance Minister, Nadhim Zahawi, has announced that he will present a bill to parliament that will clarify the procedure for using stablecoins in financial services and markets. This move is aimed at increasing the flexibility and competitiveness of the British financial services sector.

Cryptocurrencies and stablecoins have the potential to transform the financial landscape of the country by increasing the efficiency of transactions. Therefore, the bill aims to leverage the opportunities of digitalization and innovative products to advance the fintech industry of the United Kingdom.

Consumers should be protected by legislation, and victims of cryptocurrency fraud can be compensated. It is also necessary to eliminate the risks of cyber attacks by protecting access to cash for millions of people who rely on these funds
Zahavi said

Protecting Consumer Rights and Preventing Fraud

As part of the bill, consumers will be protected by legislation, and victims of cryptocurrency fraud will be compensated. Furthermore, the risks of cyber attacks will be eliminated by securing access to cash for the millions of people who rely on these funds.

Setting Standards and Adoption Roadmap for Stablecoins

The bill will establish standards for the use of stablecoins in payments, as cryptocurrencies are introduced into retail and other business areas. Additionally, the document will include a roadmap for the adoption of stablecoins, which will accelerate the spread of digital assets in the UK.

Registration Requirements for Cryptocurrency Companies

Cryptocurrency companies, issuers of stablecoins, and custodial services will be required to register with the UK Financial Supervision Authority (FCA) to ensure compliance with the standards set forth in the bill.

Investor Protection in Event of Stablecoin Collapse or Crypto Asset Issuer Bankruptcy

In May, the British Ministry of Finance began developing regulations that will allow investors to return funds in the event of the collapse of stablecoins or the bankruptcy of issuers of crypto assets.

Public Consultation on Decentralized Finance (DeFi) Taxation

Recently, the British government opened a public consultation on the taxation of decentralized finance (DeFi). Officials promise to simplify the filing of tax returns for participants in this industry.

Conclusion

The new bill on financial services and markets is a step towards a more innovative and digitalized UK fintech industry. It will provide consumer protection, establish standards, and accelerate the adoption of stablecoins. As the fintech sector continues to grow and evolve, regulations and guidelines are crucial to ensure compliance and stability. The UK's proactive approach to fintech regulation is a promising sign of growth and progress.