Circle's Disparte stresses urgency for UK stablecoin regulation.
Key Takeaways
- UK is close to introducing stablecoin legislation, according to Circle's policy head.
- Stablecoin regulations aim to bring UK in line with EU's MiCa standards.
The UK government will soon introduce legislation aimed at regulating stablecoins, said Circle’s global head of policy Dante Disparte in a recent interview with CNBC. He suggested the formal laws would come “within months, not years.”
According to Disparte, the government’s cautious approach may have been beneficial in light of scandalous crypto events like the FTX saga or the collapse of TerraUSD (UST), but the timely introduction of stablecoin regulations is crucial for the UK to harness the potential benefits of this technology while mitigating the risks.
In comparison, the European Union has been actively working on a comprehensive regulatory framework for crypto assets, including stablecoins. Last year, the EU officially approved the Markets in Crypto-Assets Regulation (MiCA), which aims to create a unified legal framework for crypto-assets across EU member states. The MiCA regulation is expected to be fully implemented by the end of this year.
Economic Secretary to the Treasury Bim Afolami said earlier this year that the UK government was committed to advancing legislation for stablecoins and crypto staking services.
“We’re very clear that we want to get these things done as soon as possible,” he stated.
Initially, the plans were to introduce new legislation for stablecoins, crypto staking, exchange, and custody by June or July, Afolami said at the Innovate Finance Global Summit in April.
There have been some delays, but progress is still being made. As soon as the regulatory framework is implemented, the Financial Conduct Authority (FCA) and Bank of England will be responsible for overseeing it.