Close
You can see the British regulations in the field of stable coins in full in the continuation of this article from Pooyan Music site. As you know, these days people all over the world are active in the field of digital currencies and have their own regulations in this field.
A stablecoin is a type of digital currency that is designed to have stability and price stability compared to other digital currencies, such as Bitcoin. In fact, a stablecoin is known as a type of backed digital currency, meaning that its value is usually linked to the value of a common asset such as national currencies or other gold resources.
The main goal of stablecoin is to create a digital currency with price stability and reduce price fluctuations. This makes stablecoin a suitable alternative to digital currencies for e-commerce, money transfer, investment and other applications. There are different ways to ensure the stability of the stablecoin price.
Some stablecoins usually use support related to national currencies such as the US dollar or the euro to maintain price stability. Others use algorithmic methods and artificial intelligence to control and regulate supply and demand. The advantages of using stablecoins include maintaining price stability, reducing price fluctuations, high speed and lower cost in transferring money and the possibility of using it in other financial programs.
Stablecoins are used to transfer money quickly and cheaply. Since their value is stable, they can be used as a safe medium to transfer money. Using stable coins can help reduce costs and risks in e-commerce and marketing.
By using stable coins, international transactions are done faster and with the lowest cost. Stablecoins are used as a means of protecting the value of money against inflation and market fluctuations. By converting money into stablecoins, it is possible to avoid fluctuations in the price of digital currencies.
Stablecoins are used to facilitate international trade. By using stablecoins, international transactions can be done faster, cheaper and safer. As a stable digital currency, stablecoins can be used in banking and payment systems. By using stablecoins, bank transactions can be facilitated and payment costs can be reduced.
The UK government has released an update on its plans to regulate fiat-backed stablecoins. The document, published on October 30, aims to facilitate and regulate the use of fiat-backed stablecoins in UK payment chains.
According to the document, the Treasury is planning to introduce specific legislation to Parliament in 2024 that would bring the regulation of fiat-backed stablecoins under the Financial Conduct Authority’s (FCA) mandate. Stablecoins without fiat backing, including algorithmic stablecoins, will not be allowed to enter regulated payment chains.
However, this document does not impose a direct prohibition. But it is clear that these transactions will remain unmonitored. In addition, the Treasury considers them subject to the same requirements as unbacked crypto assets. In the case of standard stablecoins, the FCA gains the power to require stablecoin issuers to hold all reserve funds in a legal wallet.
The terms of the trust will be set out in FCA rules, including buyback obligations in the event of a company failure. In the second scenario, UK stablecoin issuers would face procedures under the Insolvency Act 1986. The Treasury Department document refers to this bill and calls it FCMA 2023.
