Varun Paul, who earlier led the fintech division at the Bank of England, spoke in detail about the looming prospects of upcoming UK crypto regulation focusing on stablecoins and CBDCs.
UK crypto regulation has been an important matter for the country’s government and regulators in recent months. A former Bank of England official, Varun Paul, recently spoke about it in an interview. He said stablecoins, central bank digital currencies, and crypto could coexist with coordination between regulators. Paul specifically described the roles of the Bank of England, the Treasury, and the Financial Conduct Authority.
The official currently heads a crypto custody firm’s CBDC and market infrastructure division. He mentioned that Europe’s crypto regulation, the MiCA, was the most advanced today. Further, Paul affirmed the UK was also developing towards it and closing the gap with the MiCA.
All three regulators he mentioned were actively working towards UK crypto regulation. They also conducted research and published rules for the crypto industry last year. For instance, the Financial Conduct Authority released a stablecoin regulation paper in November 2023. A UK government official also confirmed in February 2024 that authorities were working towards stablecoin regulation.
Meanwhile, Paul, who also recently authored a document on tokenization, said, “You could see the latest set of publications as trying to position the U.K. level with the EU and encourage innovation so that London is seen as a Fintech center and a crypto hub.”
Paul firmly believed that effective coordination between the regulators was the key to transparent regulation. He also narrated the vast potential of stablecoins and central bank digital currencies in the UK economy.
In the US as well, talks for crypto regulation have got ahead in 2024 with new regulatory bills in the country.
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