Circle’s policy head Dante Disparte believes the UK is only months away from rolling out stablecoin regulations.
The United Kingdom is on the brink of implementing regulations for stablecoins, with Circle’s global policy head, Dante Disparte, predicting that these laws could arrive in “months, not years.”
In an interview with CNBC during his recent visit to London, Disparte said the country’s cautious approach towards the asset class may have been a wise decision, particularly in light of the significant disruptions seen in 2022, such as the dramatic collapse of the Terra (LUNA) blockchain and downfall of FTX.
“You could also look back, and I think many in the UK and in other countries would argue that they are vindicated in not having jumped in too quickly and fully regulating and bringing the environment onshore because of all the issues we’ve seen in crypto over the last few years,” Disparte said.
A Gradual Approach to Regulation
The government of the United Kingdom has been making efforts to establish a clear regulatory framework for the asset class. Last year, the country’s HM Treasury concluded its public consultation on the potential regulations of fiat-backed stablecoins within the region.
In April 2024, Coinspeaker reported that the UK is considering rolling out regulations for cryptocurrencies including stablecoins between June and July 2024. The report cited the country’s Economic Secretary, Bim Afolami, who said the law will even cover crypto service providers, custody, and other related activities.
However, the timeline has passed without action but Circle’s policy head believes the slow space has allowed for a thorough examination of the complexities surrounding stablecoin implementation. He hinted that the long-awaited laws may finally come to fruition in no time.
Exploring Digital Currency Options
Disparte’s prediction is based on the presumption that the UK will miss out on significant technological advancements and economic opportunities if it does not introduce stablecoin-specific laws. He noted that there is currently increased urgency for formal rules governing stablecoins.
With the stablecoin market now exceeding $170 billion, the UK risks falling behind as the European Union and Singapore advance their own regulatory frameworks. According to Disparte, “you can’t have the economy of the future unless you have the money of the future.”
In addition to discussions around stablecoin regulation, the Circle’s executive said there are ongoing deliberations regarding the introduction of a digital pound, often referred to as “Britcoin.” Disparte shared that he had met with officials from the Bank of England and found their approach to central bank digital currencies (CBDCs) to be encouraging.
Last year, the UK’s central bank said that introducing Britcoin into the crypto market would open up a host of “lucrative opportunities” for businesses in the region.
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