• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

UK Government Proposes Amends to Manage Risks Associated With Failed Stablecoin Projects

June 1, 2022
in Crypto News
Reading Time: 2 mins read
A A
0
UK Government Proposes Amends to Manage Risks Associated With Failed Stablecoin Projects
0
SHARES
7
VIEWS
ShareShareShareShareShare

The catastrophic event sparked renewed effort from the global regulators to address key inefficiencies in the stablecoin market that many consider could potentially jeopardize financial stability. The UK government, for one, is introducing measures in a bid to protect investors against the potential collapse of stablecoins.

Changing Existing Legislation

In a consultation paper released on Tuesday, the UK Treasury will focus on granting more power to the Bank of England to supervise the administration of failed stablecoin issuers of “systemic importance.” It also includes suggestions to amend the existing legislation to address risks associated with the pegged tokens.

The Treasury has revealed that it will accept responses on the consultation until 2nd August. The objective of this proposal is to bring necessary changes to UK’s existing plans and amplify regulation on stablecoins. The Treasury said:

“Since the initial commitment to regulate certain types of stablecoins, events in crypto asset markets have further highlighted the need for appropriate regulation to help mitigate consumer, market integrity, and financial stability risks.”

The new proposal will include bringing about changes in the Financial Market Infrastructure Special Administration Regime, also known as FMI SAR. The aim is to incorporate the challenges posed by potential failures of stablecoin issuers that are not banks.

As per the Treasury’s plans, FMI SAR will subsequently transform into the general default framework for dealing with failed stablecoin projects. If a failed stablecoin project appears to threaten financial stability, it will be able to access the necessary insolvency arrangements.

The consultation paper comes on the heels of the Financial Conduct Authority’s (FCA’s) plans to address Terra’s collapse with the Treasury over the next few months.

China Signals Tighter Regulations

Terra’s crash is currently being seen as a “black swan” event following which many countries are bolstering efforts for monitoring the market and establishing crypto regulations. China has already imposed a blanket ban on cryptocurrency trading and mining activities. But the country’s policymakers may be looking ahead to further tighten their grip on the industry.

A recently published article on the state-owned media outlet, the Economic Daily, lauded the government’s stringent crypto law while discussing Terra’s failure.

Reporter Li Hualin appreciated China’s efforts in avoiding investment risks from stablecoins and included a quoted Zhou Maohua, a researcher at the China Everbright Bank who said that the regulatory agencies will be working on the completion of regulatory shortcomings, and establish targeted regulatory measures to address stablecoins.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Meta Apes brings the best of Web2 into Web3 gaming

Next Post

Jeremy Grantham warns the S&P 500 will ‘likely’ plunge another 40% minimum — here are 3 shockproof stocks in his portfolio to help limit the pain

Related Posts

New referendum-led governance structure proposed for Polkadot
Crypto News

New referendum-led governance structure proposed for Polkadot

June 30, 2022
4
BlockFi Gets Money Services License in Iowa Weeks After Paying a $1M Penalty
Crypto News

BlockFi Gets Money Services License in Iowa Weeks After Paying a $1M Penalty

June 29, 2022
4
ChangeNOW’s Mike Ermolaev on Non-Custodial Wallets vs. CEXs in Forbes Interview
Crypto News

ChangeNOW’s Mike Ermolaev on Non-Custodial Wallets vs. CEXs in Forbes Interview

June 29, 2022
8
Snoop Dogg on crypto winter and why its good for the industry
Crypto News

Snoop Dogg on crypto winter and why its good for the industry

June 29, 2022
5
White House set to make recommendations to reduce crypto energy consumption
Crypto News

Crypto miners putting more pressure on Bitcoin price

June 29, 2022
5
Next Post
Jeremy Grantham warns the S&P 500 will ‘likely’ plunge another 40% minimum — here are 3 shockproof stocks in his portfolio to help limit the pain

Jeremy Grantham warns the S&P 500 will ‘likely’ plunge another 40% minimum — here are 3 shockproof stocks in his portfolio to help limit the pain

Recommended

Bitcoin bounce is leading crypto to higher ground

Bitcoin bounce is leading crypto to higher ground

June 21, 2022
6
Here’s why Warren Buffett bought all the Occidental Petroleum shares he could, even with oil prices shooting past $100

Here’s why Warren Buffett bought all the Occidental Petroleum shares he could, even with oil prices shooting past $100

June 5, 2022
5
DigitalBits XDB Added to List of Legalised Cryptocurrencies in Ukraine

DigitalBits XDB Added to List of Legalised Cryptocurrencies in Ukraine

June 9, 2022
9
Crypto contagion is main risk to the market, says analyst

Crypto contagion is main risk to the market, says analyst

June 28, 2022
6
Binance warns of loss of funds for Litecoin transactions that use the MWEB feature

Binance warns of loss of funds for Litecoin transactions that use the MWEB feature

June 14, 2022
8
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Couche-Tard says high prices boost sales of cheap beer & tobacco
  • New referendum-led governance structure proposed for Polkadot
  • Economic Pressures Contribute to Finance Leaders Improving Last-Mile Readiness

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?