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UK Department Of Treasury Rushes To Regulate Stablecoins In The Wake Of The Terrapocalypse

Published 16/05/2022, 17:59
© Reuters. UK Department Of Treasury Rushes To Regulate Stablecoins In The Wake Of The Terrapocalypse

The United Kingdom's Department of Treasury — or Her Majesty's Treasury — is regulating stablecoins following the collapse of TerraUSD (CRYPTO: UST) which brought down major cryptocurrency Terra (CRYPTO: LUNA) with it.

What Happened: Charles, the Prince of Wales, announced during the Queen's speech that Her Majesty's Treasury is introducing a bill regulating — among other things — stablecoins, according to a Saturday report from The Telegraph.

See Also: How To Earn Free Crypto

During the speech, Prince Charles said that "a bill will be brought forward to further strengthen powers to tackle illicit finance, reduce economic crime and help businesses grow [Economic Crime and Corporate Transparency Bill]."

This follows an early April tweet from Her Majesty's Treasury noting that the UK's Economic Secretary John Glen announced "that stablecoins will be brought into UK payments regulation."

Why It Matters: The move shows that the United Kingdom is continuing on its path to the adoption of stablecoins despite the recent fall of UST, thanks in part to differentiating fiat-backed stablecoins and algorithmic stablecoins such as TerraUSD.

A Treasury spokesperson said that "the Government has been clear that certain stablecoins are not suitable for payment purposes as they share characteristics with unbacked crypto assets."

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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