The UK will discuss the law on the regulation of cryptocurrency stablecoins

The UK Parliament will consider a draft law on the regulation of stablecoins developed by representatives of the country’s Ministry of Finance.

Stablecoins appear in the new draft law called the Financial Services and Markets Bill as means of payment. Accordingly, their circulation should be regulated in accordance with the standards of the financial services sector in the UK. According to UK Finance Minister Najim Zahawi, the new law will allow the country to introduce digital assets into circulation «as safely as possible» while complying with all existing laws.

The new crypto bill also proposes amendments to some insurance laws and a proposal to pay compensation to victims of financial fraud. Experts noted that the Financial Services and Markets Bill is close in its provisions to the MISA program, which is currently being discussed by the European Commission.

As a reminder, the Financial Support Committee of the Central Bank of Great Britain recently stated that investor confidence in stablecoins has been shaken, especially in those with riskier collateral. The Committee believes that stablecoins should meet the same standards of stability and redemption as fiat money from commercial banks, and that cryptocurrencies should be regulated more strictly in general.