The UK and the US will join forces to regulate cryptocurrencies and believe their meeting will be the first foothold for developing strategies that will regulate the industry so let’s read more today in our cryptocurrency latest news.
Her Majesty’s Treasury hosted a regulatory pillar for the UK financial innovation partnership with the counterpart US Treasury Department and both parties acknowledged the importance of teaming up to support innovation and enhance regulatory outcomes for digital assets in various jurisdictions. According to the joint statement issued, domestic watchdogs like the SEC and the CFTC or the FCA all took part in such a meeting focusing on the recent developments of CBDCs and stablecoins. The panel laid a foundation for dialogue as such in the future.
Since its birth, crypto was made in response to third-party imposed restrictions on borderless transactions and crypto-assets made plenty of headlines with a series of historic market crash as regulators find it pressing to develop cross-border efforts that targeted the industry. Among the regulatory concerns regarding the space, the key role of stablecoins and crypto trading platforms in the digital asset ecosystems involved in the drama with the fall of Terra caused concerns from watchdogs, and the statement outlined:
“UK and US participants also considered future opportunities for further discussion on broader crypto-asset regulatory initiatives and considerations as their respective policy and regulatory agendas progress.”
Crypto regulations were a covered issue within G7 and G20 meetings and both the UK And US vowed that robust cross-border regulatory cooperation aims to provide a clear regulatory framework for exchanges and stablecoins which will be the main theme behind such meetings in the future. In addition, the UK and US authorities updated their approaches for CBDCs and expressed their plans for policy research and tech exploration. But it didn’t come as a surprise as the BIS indicated that central banks are exploring how to launch their own CBDC.
The rise in adoption of CBDCs in the fiat-based monetary system is perceived by central banks as the evolution of the respective roles rather than a revolution according to the First Deputy Governor of Sweden’s Central bank Cecilia Skingsley. She noted that a big challenge ahead of CBDC paments rests upon interoperability with these digital currencies being designed and implemented by governments across the world. The communication between nations before launching such a currency became crucial for guaranteeing success.