- Circle’s Dante Disparte predicted that the UK will soon introduce stablecoin regulations.
- Disparte urges the UK’s government to take quick action to prevent lagging behind other global financial markets.
- The UK needs to keep pace with the European Union by implementing proper crypto regulations.
Circle’s global head of policy, Dante Disparte, recently discussed the upcoming stablecoin regulations in the United Kingdom. He said introducing these regulations is crucial to mitigate the risks in the crypto sector.
The UK’s cautious approach to crypto regulation has allowed it to put itself in a good position. Stablecoin regulation requires careful monitoring as its significance in the financial system keeps expanding.
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Circle’s Dante Disparte On UK’s Stablecoin Regulations
In an interview with CNBC, Circle’s Dante Disparte suggested that the formal laws would come “within months, not years.”
Disparte added that the government’s recent cautious approach may have helped tackle shady crypto events. This includes the collapse of TerraUSD (UST).
Now, the upcoming stablecoin regulations will mitigate various risks. Also, these regulations will provide a framework to balance innovation with security.
The UK will be able to attract more blockchain and cryptocurrency businesses by providing a clear regulatory framework for stablecoins.
UK’s Attempt To Catch Up In Crypto Regulation
The UK can lag behind the European Union in implementing proper crypto regulations. Disparte said that the UK’s government needs to act fast to catch up with EU nations.
EU is known for establishing strict stablecoin regulations under the Markets in Crypto Assets (MiCA) framework. Also, formal laws have been enacted for stablecoins in Singapore.
Disparte has said that stablecoin regulation might help with moves that could advance banking and finance. There is a possibility for the digitalization of the British pound. The UK needs to bring more innovation in fintech, instant payments, and digital currencies.
Crypto’s Legal Status In The UK
Cryptocurrencies are legal in the UK. However, their government hasn’t implemented a comprehensive regulatory framework for cryptocurrencies. The Financial Conduct Authority (FCA) is the sector’s main regulatory body.
Even the crypto businesses providing services with digital tokens need to register with the FCA. In this way, they comply with anti-money laundering (AML) regulations.
Prime Minister Keir Starmer’s predecessor, Rishi Sunak, had previously envisioned Britain becoming a global crypto hub. In April 2024, the former government announced plans to become a “world leader” in the crypto space by outlining plans to bring stablecoins into the regulatory fold.
Also, they had consulted on a regime regulating digital currency trading. However, the new Labour government hasn’t been as vocal as the Conservatives were on crypto regulation.
In September 2024, the UK Parliament introduced the Property Bill, which aims to clarify the legal status of digital assets, including cryptocurrencies and non-fungible tokens (NFTs).
There’s been a sense of urgency to introduce formal digital asset trading regulations.
This bill recognizes these digital holdings as personal property under British law. This move aims to keep the UK at the forefront of the global tech industry.
Disclaimer
This article is for informational purposes only. Crypto investment involves inherent risks due to the volatility in price. Readers should conduct their own research before making any investment decision. Also, you can consult a crypto expert before investing in cryptocurrencies.
