According to government officials, The United Kingdom plans to focus initially on regulating stable coins, before moving to tackle the wider digital currency sector.
Financial services Minister John Glen said the U.K. government would target stable coins in order to prevent threats to competition, in a bid to prevent any single private player from coming to dominate the market, Reuters reported
In particular, it is thought the minister was referring to Tether, the controversial stable coin which has more volume than any other cryptocurrency on the market, and has doubled in size over the last few months. This comes after NYAG investigators recently confirmed
Tether wasn’t backed by the dollar, deceived investors, and covered up massive losses.
Tether is currently the most “valuable” company in the world that hasn’t complete a single audit in their 7+ year existence. With no current limitations to how long they can continue their fraud, regulators are rightfully going after them first.
Addressing a City & Financial conference, the minister said that while there was a case for intervention in the wider digital currency markets, private stablecoins were a more immediate target.
“We need to manage risks to competition. There is the potential for some firms to swiftly achieve dominance and crowd out other players, due to their ability to scale and plug into existing online services. We believe the case for intervention in the wider cryptocurrency markets is less immediately pressing.”
On blockchain technology, Glen said the U.K. government would take steps to encourage innovation and collaboration on new technologies, in a bid to strengthen this emerging sector of the economy.
“We have a once-in-a-generation opportunity here to make vast strides in the efficiency of financial services, and ultimately benefit consumers and the economy as a whole,” according to the official.