The United Kingdom has been tipped to pass laws covering stablecoins very soon. According to Circle’s global policy head Dante Disparte, the laws could be passed in the coming months instead of years.
The United Kingdom has dragged its feet regarding regulation in the crypto sector compared to other regions. For instance, the European Union (EU) recently introduced its Markets in Crypto-Assets (MiCA) regulation, same with Singapore where regulations are in effect.
Regardless, Disparte feels the delay might be a blessing in disguise considering the events that plagued the crypto sector in 2022.
United Kingdom still behind in crypto regulation
The crypto market has seen its shares of remarkable events and now, stablecoins are seen as the industry’s future. The Circle executive clarified that the UK might be risking being left out if it does not come up with a regulation. He noted that the UK cannot have the economy of the future unless they have the money.
The MiCA regulation in the EU has spelled out clear rules for the issuance and other activities of stablecoin. Without similar laws, the United Kingdom might be missing out on the benefits that other parties are enjoying.
The UK has also not progressed in creating its digital token. The Bank of England and its executives are still exploring the possibilities of creating its digital currency known as the “Bitcoin.”
According to the Circle exec, a recent meeting with the officials at the Bank of England was positive. Disparte noted that a delay in launching the CBDC might be the right move, even though no details were revealed.
Political switches and policy delays
Former British Prime Minister Rishi Sunak was a strong supporter of the crypto sector, pushing Britain ahead in the industry. During his reign, the government initially had plans to regulate stablecoins along with other aspects of the markets. During this period, the laws were expected to happen in mid-2023.
The plan also included adding stablecoins under a clear guideline to ensure stability in its market. However, political switches have slowed things down a bit. After taking over, the Labour Party has been quiet about the crypto market and its regulation.
Current Prime Minister Keir Starmer is yet to show the same seriousness as his predecessor towards crypto, though a plan was released that would include financial services in the UK. One of the focus points was to build a hub in the UK that would focus on securities tokenization.
Securities tokenization will allow users to hold a digital representative of physical financial instruments like bonds, and shares. It is an aspect of the crypto industry that most governments and financial institutions are looking into presently.