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The British Treasury excluded the legalization of algorithmic stablecoins
The British Treasury will include the regulation of stablecoins as a payment mechanism in the bill on financial services and markets. About this writes The Telegraph.
The publication cites the words https://gagarin.news/ua/news/ecology-comes-first-eu-may-ban-bitcoin-trading/ of the representative of the treasury, who indicated that the decision to supplement the document was announced in the speech of Queen Elizabeth II of May 10, 2022.
In circulation, Prince Charles announced the introduction of new legal norms in various sectors and measures to stimulate economic growth to increase the standard of living in the region.
“A bill will be introduced aimed at further strengthening the powers to combat illegal financing, reducing economic crime and promoting business growth,” the statement said.
The treasury will not include algorithmic stablecoins in the document, since they “do not guarantee stability”.
“The government made it clear that some stablecoins are not suitable for payment purposes, since they have general characteristics with unsecured cryptoactives. We will continue to monitor the wider crypto -activists market and are ready to take further regulatory measures if it is required, ”the regulator’s statement quoted the publication.
On May 8, the algorithmic stablecoin Terrausd (UST) has lost its binding to the US dollar. This happened against the background of an outflow of assets from the Anchor protocol due to a decrease in deposit yield on deposits to 17.87%.
May 10 Asset quotes fell below $ 0.62. The fall continued on May 11, after which the Luna cryptocurrency used to release UST collapsed to $ 0.3. At the time of writing, UST is traded around $ 0.08, the price of LUNA – $ 0.0002 (Coingecko).
In the evening of May 15, another algorithmic stablecoin – Dei Deus Finance DAO project – has lost its binding to the US dollar.
Earlier, the treasury announced plans to legalize stablecoins and the release of own NFT. This step is designed to designate Great Britain as a friendly jurisdiction in relation to digital assets.
Recall that in March, the Bank of England published framework principles for the formation of a regulatory framework for cryptocurrencies with an emphasis on future risks for financial stability.