Stablecoins receive the Queen’s blessing as the UK is critical for landmark crypto legislation.


When Prince Charles spoke on behalf of the Queen (for health reasons) in the Senate last week (for health reasons), he outlined the government’s legislative priorities and the steps to be presented to members of Parliament.

As the UK’s cryptocurrency sector prepares important legislation in the coming months, the Queen’s annual speech at the British Parliament focused on cryptocurrency.

The speech consists of 38 bills that the Justice Department and ministers from security to education, health and infrastructure are expected to sign early next year.

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Radar’s stablecoin

Cryptocurrencies and stablecoins were in the UK crosshairs.

In January of last year, His Majesty’s Treasury began consulting on a proposed UK approach to crypto assets and stablecoins, including a proposal to bring the stablecoin under UK regulatory jurisdiction.

Despite the cryptocurrency market catastrophe this week, HM Treasury is coming up with a similar idea after the Queen’s speech.

Queen Elizabeth normally delivers the Queen's Speech, but Prince Charles did so on this occasion due to health concerns. (Yahoo News)

Last month, Treasury Secretary John Glenn announced that the UK government would implement “the world’s best regulatory framework for stablecoins”.

Treasury Secretary Rishi Sunak said the government will “ensure that the UK financial services industry is at the forefront of technology and innovation”.

Unaffected by chaos in the UK cryptocurrency market

The proposal from the two officials comes at a time when the cryptocurrency market is in turmoil after the US dollar-tied “algorithmic” stablecoin TerraUSD plunged below $1 this week, triggering massive sell-offs in other cryptocurrencies.

Over the past week, the total value of all cryptocurrencies has fallen by more than $300 billion, and the market has reached its lowest point in nearly a year.

Terra’s value was tied to a separate coin called LUNA, and software was leveraged to maintain its price. Last week, the price plummeted as trust in the system was shattered.

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The total value of all cryptocurrencies has dropped by about $300 billion in the last week. (Yahoo News)

As the situation unfolded, U.S. Treasury Secretary Janet Yellen urged Congress to approve federal regulations on stablecoins.

Meanwhile, a representative from the UK Treasury said in his Majesty’s speech that legislation regulating the use of stablecoins as a means of payment would be included in the financial services and markets legislation unveiled in His Majesty’s speech.

Proponents argue that stablecoins will reduce transaction fees such as cross-border transactions while making payments more efficient and secure.

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Crypto total market cap at $1.26 trillion on the daily chart | Source: TradingView.com

Laws to curb illegal use of Crypto

The bill also appears to be trying to “fight” the illegal use of cryptocurrencies.

According to Prince Charles:

“Measures will be introduced to significantly strengthen authorities to deter illicit funds, minimize economic crime and support commercial growth. Actions will be taken to support the security services protecting the UK.”

The UK government has also confirmed that it will hold consultations later this year to regulate a wide range of cryptocurrency activities, including cryptocurrency trading using Bitcoin and Ether.

The government announced last week that it would create its own Non-Fungible Token (NFT) as part of its efforts to become a “global leader” in the cryptocurrency industry.

Speaking during a London fintech event, Glen said that Sunak had asked Royal Mint, the government-owned body responsible for minting UK coins, to develop and issue an NFT “before the summer”.

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Featured image from Daily Express, chart from TradingView.com

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