UK to announce cryptocurrency regulation plan in coming weeks, sources say

On Sunday, the U.K. government will soon unveil a plan to regulate cryptocurrencies, with the focus likely to be on stablecoins anchored to the U.S. dollar, according to four sources. British Finance Minister Rishi Sunak will announce a new cryptocurrency regulation plan in the coming weeks, the sources said.

The cryptocurrency regulation plan could benefit the industry by providing legal clarity to an industry that has so far lacked regulation, people familiar with the matter said. The sources also revealed that UK Treasury officials have shown a willingness to understand cryptocurrencies as well as stablecoins.

The use of stablecoins has shown exponential growth over the past few years, while interest in cryptocurrencies has become more widespread. Currently, the world's largest stablecoin, Tether, has a total circulation of more than $80 billion, well above the roughly $4 billion it had two years ago.

Last Thursday, the Bank of England said it needs to push for stricter regulation of cryptocurrency assets within the U.K. and globally. The BoE noted that the value of crypto assets grew by about 10 times and market capitalization peaked at $2.9 trillion from early 2020 to November 2021.