UK to Focus Regulation on Stablecoins Rather Than Crypto in General: Report

The U.K. will focus on regulating stablecoins rather than cryptocurrency in general, according to statements made by a treasury minister, Reuters has reported.

• Speaking at a City & Financial conference Tuesday, Economic Secretary to the Treasury John Glen said stablecoins could pose a threat to competition.
• “There is the potential for some firms to swiftly achieve dominance and crowd out other players, due to their ability to scale and plug into existing online services,” Glen said.
• It is likely he was referring to a stablecoin like Diem. Announced by Facebook in June 2019 as Libra, the proposal was met with widespread concern from governments and central banks.
• The U.K. treasury released a consultation paper in January to gather feedback on the government’s approach to regulating stablecoins and other cryptocurrencies.