The latest report revealed that in alignment with Europe, the United Kingdom is ready to launch a set of regulations that would guide the conduct of stablecoin issuers in its region. In addition, the country legislature is set to pass the proposed Financial Services and Markets Bill, FSMB.
According to the report, the UK is moving closer to implementing its stablecoin regulation as the House of Lords has passed the proposed FSMB. In addition, the bill is in the last stages of being adopted into the country’s financial regulation.
Furthermore, the report showed that the bill defines crypto as a regulated financial asset while considering stablecoins as an improved means of payment settlement. Crypto analysts stated that as the House of the Lords passed the FSM Bill, it would propel the regulation of stablecoin and the cryptocurrency industry to the next level.
The bill was first introduced in July last year, and it has about 340 pages suggesting several ways to regulate the crypto industry. According to reports, the bill surfaced mainly further to empower UK regulators over the country’s economy.
As reported in March 2022, a government agency issued an Enforcement Notice to over 50 crypto firms that advertise their products. It called their attention to the regulator’s plan to regulate crypto promotional activities.
Hence, after a series of adjustments and amendments, many features, like the regulations for crypto-related advertisements, were included in the bill. More so, the bill is in its final stage. Soon it will be enforced in the country’s constitution, according to reports.
UK Introduces Crypto Rules In Alignment With the EU
According to the report, the Treasury Department of the United Kingdom is currently consulting on the crypto industry. And to give it more power to tame the rapidly-growing blockchain technology innovation, the US government passed the FSMB.
Furthermore, speculators stated that the Issue of a regulatory framework is global and affects many countries as they strive to draft a framework that benefits investors and the industry. However, the UK seemed to be moving ahead of other countries regarding churning out crypto regulation.
Nonetheless, in forming its crypto regulations, the UK reportedly aligned its rules with the ones created by the European Union. Meanwhile, the EU recently launched the Markets in Crypto Assets (MiCA) legislation.
According to reports, MiCA aims to provide a comprehensive regulatory framework for the crypto industry to teach crypto startups and firms about activities that are legal and those offensives.
In addition, as the industry continues to expand and gain more adoption worldwide, the EU reportedly envisioned a necessity for international cooperation. Hence, it plans to upgrade the current version of the MiCA to accommodate new global rules.
New Bill Affects Market Cap Of Major Stablecoins
Nonetheless, the FSMB is expected to surface before the lower house of parliament for approval. Once the Upper and lower Chambers have signed the bill, it would be passed to the King for final approval. Once the king approves it, the bill will become a law in the country.
Meanwhile, it is worth noting that the two chambers can decide to send the bill back and forth if there is any disagreement concerning any of the rules till a common ground is found.
While countries continue to look into how they would regulate the crypto industry, here is a breakdown of the recent market capitalization performance of some of the popular stablecoins.
USDT (Tether) recorded a significant decline in market cap, rising from $83.56 billion to about $18.14 billion. In addition, the weekly price chart revealed that the USDT market is the only stablecoin that has a curve that is entirely up.
Followed closely is the USDC (Circle USD) which rose from $28.06 billion to about $28.46 billion in market cap.
Meanwhile, the Binance stablecoin, BUSD, recorded a massive decline in market cap in recent times. It dropped significantly from $4.62 billion to about $4.30 billion.
