According to CNBC, the UK will reveal its plans to regulate the cryptocurrency industry in the coming weeks.
On Sunday, CNBC reported that although details are still being finalized, the regulatory mechanism will focus largely on stablecoins. It is a fixed cryptocurrency with the value of other asset classes.
According to the report, the UK Treasury department has discussed the upcoming set of regulations with many cryptocurrency companies including Gemini, the issuer of the Gemini Dollar (GUSD), which is anchored in U.S. dollars.
The EU's landmark regulatory framework on crypto assets also emphasizes oversight of stablecoins. This regulatory framework is currently being adopted through the complex legislative process of the EU.
The U.S. Congress is also developing specific regulations on stablecoins because of the potential risks that these anonymous currencies could cause financial instability.
On Thursday( March 24), UK lawmakers released a report raising concerns about the use of cryptocurrencies posing many financial risks.
According to this report, Rishi Sunak, the UK's Minister of Finance, will announce the UK government's regulatory plan for cryptocurrencies in the coming weeks.
