UK Finance Minister Nadhim Zahawi on Wednesday will be announcing support for using stablecoins for making payments under the long-awaited Financial Services and Markets Bill. The bill will help the country create a more competitive financial services sector post-Brexit.
UK Finance members believe crypto assets and stablecoins present huge potential in transforming the financial landscape and position of the country as a leader in digital finance.
The UK to Allow Stablecoin Use for Payments
UK Finance Minister Nadhim Zahawi will present the Financial Services and Markets Bill in the Parliament on July 20 to transform the UK financial services sector. He said:
“Consumers will remain protected, with legislation ensuring that victims of scams can be compensated while also acting to protect access to cash for the millions of people that rely on it.”
The bill will set standards for utilizing stablecoins for payments as crypto adoption rises in retail and other businesses. It will present a road map on the adoption of stablecoins, which could help drive crypto adoption in the UK.
The stablecoin regulation covers consumer protections, marketing rules, and decisions regarding amendments to existing electronic money laws. Moreover, crypto companies including stablecoin issuers and custody services providers need to register with the Financial Conduct Authority (FCA).
Furthermore, members of the UK Finance Ministry believe stablecoins offer opportunities to transform the financial markets into more agile and competitive. Also, delivering innovative products, increasing operational efficiencies, and reducing risk can help make adoption possible.
The UK has earlier expressed interest in turning the country into a global crypto hub. However, the recent resignations of crypto-friendly finance minister Rishi Sunak and senior Treasury official Jon Glen somewhat impacted the plans. In fact, Rishi Sunak has promised to make stablecoins as a means of payment.
UK’s Competitiveness in the Crypto Market
The UK has been lagging behind other countries in crypto regulations and adoption. However, the strict stance might change with the stablecoin regulation, put forward plans for crypto adoption.
Recently, the British government had called for consultation on the DeFi taxation. Legislators need to support stablecoins, at least for following the transactions for taxation purposes.
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