UK Treasury Proposes Legislation To Regulate Cryptocurrency

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The UK Treasury has proposed legislation to regulate cryptocurrency companies.

The consultation paper was released on May 31 following the collapse of Terra LUNA crypto and UST stablecoin, which sent the entire industry into a downward spiral.

The paper highlighted the importance of stablecoins in innovation, but also their impact on broader financial stability, in the event of systemic failures.

He called for changes to existing legislation regarding the Financial Market Infrastructure Special Administration Scheme (FMI SAR), which was established to address the risks posed by systemic failure of payment systems.

The proposed new rules would give the Bank of England control over cryptocurrency companies, with the power to appoint an administrator in the event of default.

In addition to the mandate to ensure continuity of services for businesses moving beyond insolvency, the document says, the amendments would include an additional objective to ensure the return or transfer of customer funds and assets on deposit.

“Continuity of service may not be sufficient to mitigate financial stability risks resulting from the failure of a systemic business DSA (digital settlement asset), particularly where large numbers of individuals may lose access to the funds and assets they have chosen to hold as DSAs,” the newspaper said.

A DSA could include stablecoin issuers, wallet providers, and third-party payment providers.

“The government considers it important to ensure that existing legal frameworks can be effectively applied to manage the risks posed by the potential failure of companies’ DSA systems for financial stability purposes,” it also reads.

The consultation period ends on August 2 and will be submitted to Parliament at a later date.

Cryptocurrency short

Forbes has suspended plans to go public via a SPAC merger, The New York Times reports. Crypto exchange Binance revealed a $200 million investment in Hong Kong-based media and front company Magnum Opus Acquisition in February. A merger would have valued Forbes at $630 million, but the decision to pull out was reportedly made due to recent poor performance by SPACs.

The South Korean government has approved an investment of £117.1 million for conserved metaverse projects. It has already integrated a metaverse platform to provide citizens with virtual public services and plans to create a “K-metaverse academy” to support metaverse startups around the world, in the aim of producing 40,000 professionals in the space of ‘ by 2026.

Singaporean authorities have launched a digital asset pilot program to examine the potential of decentralized finance – “Project Guardian” – in partnership with JP Morgan, Marketnode and DBS Bank.

Users of major Ethereum-based blockchain games — including Axie Infinity, The Sandbox, and Decentraland — are down 96% from November 2021 peaks, according to a new report from Arcane Research.

Crypto prices

The aggregate market cap of over 19,600 coins is $1.3 billion at time of writing (7am UK)a decrease of 1% in the last 24 hours.

Bitcoin market leader – ta original cryptocurrency created by the mysterious Satoshi Nakamoto – dropped slightly to around $31,600. BTC is 6% increase in one week.

Ethereum, the second most valuable crypto coin – created as an announcementdecentralized network for smart contracts on the blockchain – a 3% drop to $1,930. ETH is down 3% in a week.

Binance Coin is a cryptocurrency created by popular crypto exchange Binance to help it become the infrastructure service provider for the entire blockchain ecosystem. Its BNB token fell slightly to $318, experiencing a 4% seven-day decline.

Cardano is an open-source network facilitating dApps that see themselves as an updated version of Ethereum. Its ADA token, designed to allow owners to participate in the operation of the network, added 7% to 60 cents is still up 16% over the week.

Ripple’s XRP token, a payment settlement asset exchange and remittance system, acts as a bridge for transfers between other devices. XRP lost 2% to fall below 42 cents but rose 3% over seven days.

Solana is a blockchain designed to make decentralized finance accessible at scale – and capable of processing 50,000 transactions per second. Its SOL token fell 6% to $44.70 and is down 9% from a week ago.

The Meme DOGE coin was created as a satire on the hype involving cryptocurrencies, but is now a major player in the space. DOGE fell 1% to 8.6c, leaving it up 3% in a week.

Polkadot was founded by the Swiss-based Web3 Foundation as an open-source project to develop a decentralized web. Its DOT token, which aims to securely connect blockchains, lost 2% to profit $10.27 and is 2% higher than its price a week ago.

Avalanche is a lightning-fast auditable platform for institutions, businesses, and governments. Son The AVAX token fell 8% to $25.53 and is down 11% in a week.

To see how major coin valuations have changed lately – and for a roundup of recent developments in cryptocurrency news – click here.

For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price changes, see below.

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UK Treasury Proposes Legislation To Regulate Cryptocurrency


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