Cryptocurrency owners will be insured in the UK

The UK Ministry of Finance will authorize the Financial Services Authority to oversee the return of funds to investors in the event of a stablecoin collapse.

Her Majesty’s Treasury has proposed additional protection measures in the stablecoin industry and emphasized the ability of the Ministry of Finance to influence financial stability in the event of systemic failures. It is also planned to expand the powers of supervision over the timely return or transfer of customer funds in the event of a digital asset issuer’s bankruptcy.

Government officials proposed the initiative after the collapse of the Terra project, whose manager was aware of the problems before the collapse.