The UK bill follows the EU’s approach to regulating stablecoins.
Her Majesty’s Treasure is presented in the United Kingdom Bill to regulate stable coins as a form of payment, The proposal is part of a broader and far-reaching financial bill that aims to eliminate hundreds of laws blocked by the European Union (EU) after Brexit.
bill of services and financial marketsIntroduced in the lower house of parliament on Wednesday, July 21, it will also give the government new powers to order regulators to review financial rules deemed best for the public interest.
Project Expand the Banking Act 2009 and the Financial Services (Banking Reforms) Act 2013 To include “Digital Settlement Assets” (stablecoins) and authorizes the Treasury to regulate assets, payments and their providers.
The British bill takes a similar approach, with rules included in the draft Crypto Assets Act (MiCA) being considered. Both the bills seek to deal with the alleged Threats that stablecoins pose to financial stabilitySomething that has come to light after the disaster of Terra and UST.
However, in the case of the British project, it wants Reduce the negativity and pressure of European regulations Intends to apply to cryptocurrencies. The UK wants to be a global hub for the crypto industry, so its bill seeks to ensure that the country’s regulatory code remains fair and results focused.
What does MiCA mean for stablecoins?
Specifically, the MiCA would force large stablecoin issuers to adhere to strict and prudential rules, imposing additional limits that would depend on widespread use, in addition to enforcing a 200 million euro limit in daily transactions,
MiCA also creates a “sandbox” or “sandbox”, closed test environment, analysis of the infrastructure of the financial markets, Which are also included in the UK bill to allow companies to test new technologies and practices in a controlled and safe manner.
These sandboxes will allow companies to increase the efficiency, transparency and flexibility of new fintech products, including cryptocurrencies.