The United Kingdom’s Financial Conduct Authority (FCA) has requested a comment to the public on the proposed regulations for the preservation of stablecoins and cryptocurrency.
On one May 28 Request For the comment, the United Kingdom’s The Financial Regulator has announced that its regulation proposals are “the latest milestone on the road to crypto regulation.” Draft policies are based on previous roundtables and industry feedback. David Geale, executive director of payments and digital finances at the FCA, said the agency aimed to support change while ensuring the market confidence:
“In the FCA, we have long supported the change that benefits consumers and markets. Currently, crypto is largely irregular in the UK. We want to strike a balance in support of a sector that provides change in change and supports integrity and trust in the market.”
FCA also mentioned that it will work on the Central UK bank to regulate Stablecoins. Bank of England deputy governor Sarah Breeden said, “For Stablecoins who are expected to work on the systemic scale, Bank of England will publish a complement role of consultation next year.”
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The assurance of stablecoins will remain stable
The FCA said its policies are “aimed at ensuring regulated stablecoins will maintain their value.” The regulator said customers should be clearly informed about how to managed assets assets. This is it too Recommended Stablecoin Issurs have appointed third-party custodians to hold reserve assets:
“We propose to require those who have given the right to grant the right to redeem qualified stablecoins on the PAR value of the reference money, regardless of the amount of portfolio of backing assets, with a payment order placed in an account in the name of the owner at the latest business day following a valid request.”
Breeden added that FCA proposals are part of a broader effort to develop the UK Stablecoin regime.
Related: UK to require crypto companies to report each customer transaction
Crypto care rules will enter
FCA measures also introduce new requirements for providing companies Crypto care servicesAs outlined in a separate discussion Paper. The rules are designed to ensure that the user ownership is safe and accessible at any time:
“FCA measures will require companies that provide crypto care services, which is responsible for keeping consumer cryptos safe, to ensure effective and easy to access at any time.”
The suggested steps aim to reduce the same possibility and impact of crypto companies that have failed, both in the crypto and stablecoin care sectors. The ongoing effort also follows the recent UK Chancellor revelation of Exchequer Rachel Reeves of Plans for a “Comprehensive Regulation regime“Aimed at making the country a crypto leader.
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