UK Planning to Regulate Stablecoins for Payments

The UK is planning to regulate stablecoins for payments and extend its cryptocurrency regulations to Bitcoin. The Economic Secretary to the Treasury John Glen announced at the Innovate Finance Global Summit that the UK will start regulating crypto-like stablecoins and also look at regulating tokens like bitcoin. 

The government said in a news release that stablecoins will be brought within the scope of regulation, leading the way for them to be used in the UK as a recognised form of payment.

The UK Government has taken various steps to regulate and use crypto in the country, including tokens such as Bitcoin, to "make the UK a global hub for crypto technology and innovation."

Government actions include establishing a Cryptoasset Engagement Group to work more closely with the industry and the FCA to seek direct feedback from industry participants on issues related to the development of the crypto-asset regime. Stablecoins is a cryptocurrency designed to maintain stable prices over the long term. They are often fixed and backed by fiat currencies such as the US dollar.