British Finance Minister Nadhim Zahawi will make a long-awaited announcement today. Accordingly, the ministry will support stablecoins under the Financial Services and Markets Act. That is, it will support the use of stablecoins as a payment method. The bill will enable the country to create a more competitive financial services sector post-Brexit. At least UK finance members hope so. They feel that altcoin projects and stablecoins offer great potential in transforming the country’s financial landscape. British Finance Minister Nadhim Zahawi is expected to present the Financial Services and Markets Act to parliament today:
“The law will ensure that victims of fraud are compensated. It will also continue to be protected by laws to protect consumers. People will continue to access their trusted altcoin assets with government assurance.”
UK will allow paying with these altcoin projects
Crypto adoption continues to rise in retail and other businesses in the UK. Therefore, the bill will define standards for the use of stablecoins for payments. It will also lay out a roadmap on stablecoin adoption in the UK. This roadmap will set an example for altcoin adoption in the future. According to the information obtained, the Stablecoin regulation covers items such as consumer protections and marketing rules. It also includes decisions on planned changes to existing electronic money laws. Finally, it requires crypto companies issuing stablecoins to register with the regulatory agency FCA. The companies mentioned include organizations and custodian service providers.
However, members of the UK Ministry of Finance estimate that stablecoins offer opportunities. Accordingly, the aforementioned altcoin type hopes to make financial markets more agile and competitive. Additionally, the bill has the potential to introduce innovative products and features such as operational efficiency. It is also possible that by reducing the risk of assets, it could increase adoption considerably in the UK. The UK has said in the past that it wants to turn the country into a global crypto hub. However, later crypto-friendly finance minister Rishi Sunak and senior Treasury official Jon Glen resigned. The wave of resignations in the government has taken its toll on crypto and altcoin plans. In fact, Rishi Sunak had promised to make stablecoins available as a means of payment.
UK competes in crypto space
The bill is the UK’s latest effort to stay competitive in the crypto space. As we have reported as Kriptokoin.com, the country has lagged behind in regulations in this area. Many countries seem to outperform the UK in cryptocurrency and altcoin regulations. However, it is also possible that the country’s strict view of the new currencies will change. The aforementioned perspective seems to change with the stablecoin regulation. If this happens, the country exiting the EU with Brexit may come up with plans for crypto adoption. Recently, the British government started research on the taxation of DeFi altcoin projects. Legislators need to support stablecoins. Thus, they will at least have the opportunity to follow the transactions for taxation purposes.
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