The UK recognizes stabelcoins as a means of payment
A few months ago the Ministry of Finance of Great Britain announced that they are going to recognize stablcoins as a means of payment. The government believes that in order to modernize the payment infrastructure, it is necessary to introduce new financial instruments. Stablecoins are among them.
A bill to recognize stablcoins
The new law gives consumers the right to use stablcoins as a means of payment for goods and services. Protection measures are being introduced for customers who have suffered from the actions of cryptocurrencies. They plan to provide compensation. In addition to protecting the rights of consumers, the bill establishes standards for the use of assets such as cryptocoins. The document will also provide a roadmap for the adoption of stabelcoins. It should help accelerate the spread of virtual assets in England.
It also establishes a norm that all cryptocurrency companies, custodial services, and issuers of stabelcoins will have to register. The registration will be carried out by the FCA (UK Financial Conduct Authority).
What do the UK expects after the law is passed
The British government believes that the new law will increase the flexibility and competitiveness of the financial sector. In addition, stabelcoins may completely transform the economic landscape of the state. It is known that England is one of the leading countries in the field of fintech. The Ministry of Finance is convinced that it is necessary to use every opportunity to promote the British economy.
Recall that there is already a public consultation on the taxation of decentralized finance. The Ministry promises to make filing tax returns very easy for DeFi market participants.
It is not specified when exactly the law on stabelcoins will be adopted. Right now, parliament is focused on re-electing the prime minister. As soon as the period of political uncertainty is over, parliamentarians will start considering the bill.
It is also planned during the fourth quarter of 2022 to offer a set of measures aimed at protecting investors working with risky assets. The authorities expect that due to such measures, new investment funds will come to England. This will help to strengthen the financial position of the country’s economy and survive the recession.
