The increase was so great to make crypto markets to trillion-dollar markets. Though there were some minor regulators rules, little attempt has been made to work on an elaborate plan for regulation.
The bearish changes during the last few months and the impacts on investors have started to force governments consider a regulatory framework for blockchain industry.
In a recent move, US and UK regulators held a meeting to discuss broader regulatory initiatives. They agreed to continue cooperation and maintain a safe environment for investors. The recent cases of collapse of Terra UST and other big names have forced states to reconsider their perspective and look for global cooperation.
The need for crypto regulation has grown more than ever: UK financial regulator Financial Conduct Authority (FCA) announced that they have plans to collaborate with US regulators to explore crypto regulations recently. On 14 July, Nikhil Rathi, confirmed that their main point of discussion would be stablecoins and Central Bank Digital Currencies (CBDCs).
A joint meeting between US and UK regulators was held a week later – the US Treasury Department published a joint statement after the meeting of the US-UK Financial Regulatory Working Group. The meeting was held on 21 July, and the participants included leaders and senior staff from different departments of both departments. These included representatives from the Bank of England, HM Treasury, the Financial Conduct Authority, the Federal Reserve Board, the US Treasury Department, Commodities Futures Trading Commission, FDIC, Office of the Controller of Currency, and Securities and Exchange Commission (SEC).
According to the statement, the working group that was formed in 2008 to promote financial stability, investor protection, fair markets, now will add crypto regulation and market innovation to its portfolio as the need for these grow because of increased investments.
According to the statement, the regulators reflected the outcomes of the previous meeting held in June, 2022. There were main considerations, like market changes and steps regarding crypto regulation, especially in relation to stablecoins. The participants expressed their commitment to joint efforts for innovation and regulatory.
The statement said that the participants considered further discussion regarding the developments in the near future. The regulators are aware of the global cooperation amidst the financial innovation and how further engagements can enhance their experience gained in the past. The British government has expressed clarity about the recognition and legislative developments of crypto – Queen’s speech back in this May outlined the details of the ‘safe adoption of cryptocurrencies.’
The UK government plans to make the country a Crypto Hub, and crypto regulation is a basic requisite for this purpose. They plan to work on a dynamic regulatory framework that is beneficial for both regulators and crypto users. The Royal Mint also plans to work on NFTs along with regulating stablecoins in the United Kingdom.
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