UK Finance Minister John Glen thinks stablecoin units should be regulated before the broad cryptocurrency market.
According to the latest information, UK Finance Minister John Glen said the country should first focus on regulating stablecoin units rather than the larger cryptocurrency market.
Speaking at the city and Finance conference yesterday, John Glen said that stablecoins would pose a major threat if a large firm dominated the sector, and therefore authorities should focus on stablecoins first.
“There is the potential for some firms to quickly gain dominance, scaling up existing online services and leaving other players out because of their ability to connect to them,” the UK Finance Minister said.
Although financial experts have said that regulatory frameworks should be established for the broad cryptocurrency market, Glen said that regulating the broad cryptocurrency market is not as urgent as regulating stablecoins.
According to Glen, stablecoin units under the leadership of Tether (USDT) have come a long way over the years. That's why they have to be regulated.
Britain's Finance Minister, meanwhile, has warned that no dominant player is allowed to conquer the market but that things could change overnight when a popular firm gets the regulatory approval it needs to launch one.
While the UK has previously considered regulating stablecoins, the country's financial regulator has refused to issue e-money rules for the cryptocurrency because they do not have the same characteristics.
Alex Roy, Head of consumer distribution policy at the Financial Conduct Authority (FCA),said it was impossible for stablecoin and e-money to have the same rules because they were backed by an old traditional currency or asset.