After a lot of debates and discussion on the matter, the UK has decided to give a new name to stablecoins.
A significant milestone for stablecoin regulation in the United Kingdom was reached during the first full week under the leadership of the recently elected Prime Minister Rishi Sunak. The Financial Services and Markets Bill, which was made public on October 25, seeks to strengthen the United Kingdom’s standing as a global leader in financial services, but what’s more significant is that it includes certain new definitions for cryptocurrency products.
The law redesignates stablecoins as digital settlement assets (DSA) instead of just naming it a kind of crypto. As per the new stablecoin regulation, the DSA category is said to have the potential to grow into a widespread mode of payment. It is unclear yet what rules the DSA will be subjected to or whether this new status will automatically provide them approval for adoption.
Given Sunak’s acknowledged goals in the area, we might be seeing pro-crypto regulations in the isles sooner rather than later. The incoming PM has previously expressed his support for cryptocurrencies and, when serving as the Treasury Secretary, even suggested the Royal Mint release an NFT by the end of 2022.