In an effort to establish a legal framework for domestic cryptocurrencies, the UK regulator has pointed out the stablecoin market as its primary task.
According to Coin Telegraph, a media outlet specializing in cryptocurrency, John Glenn, the minister of financial services in the UK, said stablecoins would be the main focus of the government’s cryptocurrency-related regulatory activities.
Glenn attended a conference hosted by City & Financial Global on the 20th and said this, Reuters reported.
Glenn’s decision to prioritize stablecoins over the UK’s regulation of a wide range of financial markets is due to concerns about the’market monopoly’ as it provides financial settlement services with a limited number of participants.
“Because of the ability to expand and connect existing online services, there is a potential for some companies to quickly gain an edge and push others out,” he said.
Indeed, the minister’s argument is in line with the positions of several financial regulators opposing the DM Stablecoin project. Regulatory authorities in other countries have pointed out that Facebook’s global presence is an important’risk factor’ of national monetary policy in relation to the planned digital currency (DM) project.
Meanwhile, Glenn’s remarks show that the UK government is focusing on stablecoins first as part of an effort to promote novel fintech innovation amid the withdrawal of the European Union (EU).