Treasury prepares to unveil new UK rules for crypto industry

Chancellor Rishi Sunak UK Furlough

The UK government is poised to reveal its regulatory plans for the crypto industry in the coming weeks with particular focus on stablecoins.

HM Treasury has held talks with firms including the crypto exchange Gemini, an issuer of a stablecoin tied to the price of the US dollar, CNBC first reported citing insider sources.

The UK’s Chancellor Rishi Sunak is expected to make the announcement which is being finalised. While the details of the announcement were not disclosed an insider told CNBC that the announcement is likely to be favourable for the crypto industry.

The news comes after the Bank of England last week urged policymakers to develop policy frameworks to curb the risks posed by crypto to financial stability.

Bank of England bigwig Sam Woods wrote a letter to the bosses of banks noting “increased interest” from financial institutions in the crypto sector. The letter included guidance for assessing risk when investing in digital assets or offering clients exposure to crypto markets.

President Joe Biden’s recent executive order on digital assets has kickstarted the process of formalising a US regulatory regime for crypto, encouraging the UK regulators including the Treasury to follow suit.