LONDON (Reuters) – Britain’s finance ministry said on Monday it intended to legislate to regulate some stablecoins when they are used as a means of payment.
The ministry said it intended to consult later this year on creating regulations for a wider set of crypo-asset activities.
Stablecoins are cryptocurrencies designed to have a stable value relative to traditional currencies, or to a commodity such as gold, to avoid the volatility that makes bitcoin and other digital tokens impractical for most commerce.
“We see enormous potential in crypto, UK financial services minister John Glen said, adding that regulatory standards won’t be compromised.
“We have a detailed plan… this is a new world for the newly regulated and the regulators,” Glen told UK Fintech Week.
Regulation will help consumers use stablecoins for payments with confidence, he said.
Britain will consult on a “world leading” regime for the rest of the crypto market as well, Glen said.
(Reporting by William James and Huw Jones; Editing by William Schomberg)
