AP

UK plans rules for some cryptocurrencies amid global effort

Apr 5, 2022, 5:42 AM | Updated: 9:10 pm

LONDON (AP) — Britain has unveiled plans to regulate some cryptocurrencies as part of a broader plan to become a global hub for digital payments, coming as authorities in the U.S. and Europe are racing to draw up rules for crypto.

Cryptocurrencies have exploded in popularity, leaving officials worldwide scrambling to figure out how to regulate them amid fears they could threaten financial stability and hurt consumers.

“The U.K. is open for business — open for crypto businesses,” John Glen, economic secretary to the Treasury, said in a speech Monday.

Treasury chief Rishi Sunak also has asked the Royal Mint to create a digital collectible known as an NFT as an “emblem of the forward-looking approach the U.K. is determined to take,” Glen said.

Crypto proponents say the technology will make payments faster, easier and more transparent, while skeptics worry it could be used for illegal activity like money laundering and contribute to carbon emissions because of the heavy computing power needed to process transactions.

Last month, the United States stepped up government oversight of cryptocurrency while European Union lawmakers agreed on draft rules for cryptoassets.

Glen said the government plans to update laws on payments to include a typo of cryptocurrency called stablecoins to encourage issuers and service providers to operate and grow in the U.K. Stablecoins are usually tied to the dollar or a commodity such as gold, making them a lot less volatile than normal cryptocurrencies like bitcoin, which can swing wildly in value.

“This will also enable consumers to use stablecoin payment services with confidence,” Glen said, without specifying which stablecoins would be regulated.

There are more than 200 stablecoins, and two of the biggest are Tether and USD Coin. Stablecoins are often used to pay fees on cryptocurrency trading exchanges or send payments across borders.

Sunak has commissioned the Royal Mint to create a non-fungible token, or NFT, by the summer. NFTs use a version of encryption technology known as the blockchain to create one-of-a-kind digital objects like artwork or sports memorabilia, which are sometimes sold for millions of dollars.

There are also plans to explore the idea of using crypto technology to issue U.K. government debt.

The government is now looking at “regulating a broader set of crypto activities including trading of tokens like bitcoin,” with a consultation expected later this year, Glen said.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

The U.S. Supreme Court is seen, Thursday, Feb. 8, 2024, in Washington. The U.S. Supreme Court has h...

Associated Press

Supreme Court decision on Trump’s election status could come Monday morning

A SCOTUS decision could come Monday in the case about whether Trump can be kicked off the ballot over his efforts to undo his 2020 defeat.

10 hours ago

Republican presidential candidate former UN Ambassador Nikki Haley poses for a selfie after speakin...

Associated Press

Nikki Haley wins D.C. Republican primary, her first 2024 victory

Nikki Haley has won the Republican primary in the District of Columbia, notching her first victory of the 2024 campaign.

10 hours ago

An Apache group that has fought to protect land it considers sacred from a copper mining project in...

Associated Press

A US appeals court ruling could allow mine development in central Arizona on land sacred to Apaches

An Apache group that has fought to protect land from a copper mining project in central Arizona suffered a significant blow.

15 hours ago

On Friday, March 1, 2024, the U.S. Food and Drug Administration said yogurt sold in the U.S. can ma...

Associated Press

Eating yogurt may reduce risk of type 2 diabetes, FDA says

Eating at least two cups of yogurt a week might reduce the risk of type 2 diabetes, the U.S. Food and Drug Administration said.

17 hours ago

Arizona will not approve new housing construction on the fast-growing edges of metro Phoenix that r...

Associated Press

Arizona Senate passes plan to manage rural groundwater, but final success is uncertain

A plan to manage rural groundwater passed the Arizona Senate amid concerns about the availability of sufficient water for future generations.

3 days ago

A woman pauses while shopping at a Kohl's store in Clifton, N.J., Jan. 26, 2024. On Thursday, Feb. ...

Associated Press

Federal Reserve’s preferred inflation gauge picked up last month in sign of still-elevated prices

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month.

3 days ago

Sponsored Articles

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

...

Day & Night Air Conditioning, Heating and Plumbing

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.

UK plans rules for some cryptocurrencies amid global effort