Finance Minister of the United Kingdom, John Glen, acknowledged the intention of the government to regulate the market stablecoins in the region, rather than the criptomonedas. According to the official, digital assets backed by fiat money pose “a bigger threat” to the local financial system.
The British official warned that “some companies “could advance quickly over other market participants, and achieve “rapid dominance” of their online services in the market.
Glen explained that stablecoins have become the digital asset with the highest volume of operations in the region, so their regulation is extremely necessary. Just a few days ago, Tether (USDT) reached a capitalization of 40 billion dollars, which represents a multiplication by 10 in the last 12 months.
“We have a unique opportunity here to make great strides in the efficiency of financial services and ultimately benefit consumers and the economy as a whole,” said the minister in the framework of a conference of the City and Finance.
The British clarified that still no firm has proposed to advance hegemonically in the market. However, an approval from the Financial Conduct Authority (FCA) could radically change the scenario, and the regulatory framework should be prepared for that.
On the other hand, Alex Roy – FCA’s head of Consumer Distribution Policy – remarked that the work that the Government must do in regulatory matters is extremely complex. At that point, he marked that “it is impossible “that stablecoins and the criptomonedas are sheltered under the same regulation. The former, being backed by traditional currencies, must comply with different legislation.