UK Treasury Proposes Legislation To Regulate Cryptocurrency

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The UK Treasury has proposed legislation to regulate cryptocurrency companies.

The consultation paper was released on May 31 following the collapse of Terra LUNA crypto and UST stablecoin, which sent the entire industry into a downward spiral.

The paper highlights the importance of stablecoins in innovation, but also its impact on broader financial stability, in the event of a systemic failure.

He called for changes to the current law on the Financial Market Infrastructure Special Administration Scheme (FMI SAR), which was set up to address the risks posed by the systematic failure of payment systems.

The proposed new rules will give the Bank of England control over cryptocurrency companies, with the power to appoint an administrator in the event of a default.

In addition to the mandate to ensure continuity of services for businesses that have achieved insolvency, the document says, the changes will include an additional purpose to ensure the return or transfer of customer funds and deposit assets.

“Continuity of service may not be sufficient to minimize the financial stability risks resulting from the failure of a systematic business DSA (digital settlement asset), especially where many individuals may lose access. of the funds and assets they choose to hold as DSAs, ”the newspaper said.

A DSA may include stablecoin issuers, wallet providers, and third-party payment providers.

“The government considers it important to ensure that existing legal frameworks can be used effectively to manage the risks posed by the possible failure of systematic DSA companies for the purpose of financial stability,” it also reads. of it.

The consultation period ends on August 2 and will be submitted to Parliament at a later date.

Cryptocurrency Shorts

Forbes has suspended plans to be made public through a SPAC meeting, reports The New York Times. Crypto exchange Binance announced a $ 200 million investment in Hong Kong-based media and front-end company Magnum Opus Acquisition in February. A deal would have cost Forbes $ 630 million, but the decision to withdraw was reportedly made because of the recent poor performance of the SPACs.

The South Korean government has approved an investment of £ 117.1 million for central metaverse projects. It has already built a metaverse platform to provide citizens with a virtual public service and plans to create a “K-metaverse academy” to support metaverse startups around the world, with the goal of producing 40,000 professionals in empty here in 2026.

Singapore authorities have launched a digital asset pilot program to assess the potential of decentralized finance – “Project Guardian” – with JP Morgan, Marketnode and DBS Bank.

Active users of major Ethereum -based blockchain games – including Axie Infinity, The Sandbox, and Decentraland – dropped 96% from November 2021 peaks, according to a new report from Arcane Research .

Crypto prices

The aggregate market cap of more than 19,600 coins is $ 1.3 trillion at the time of writing (7am UK)a decrease of 1% in the last 24 hours.

Bitcoin market leader – tan original cryptocurrency created by the mysterious Satoshi Nakamoto – fell a little around $ 31,600. BTC mao 6% increase in one week.

Ethereum, the second most valuable crypto coin – was made as an announcementdecentralized network for smart blockchain contracts – fell 3% to $ 1,930. ETH decreased 3% in one week.

Binance Coin is a cryptocurrency created by popular crypto exchange Binance to help it become an infrastructure service provider for the entire blockchain ecosystem. Its BNB token dropped slightly to $ 318, leaving it up 4% in seven days.

Cardano is an open-source network that facilitates dApps that see themselves as an updated version of Ethereum. Its ADA mark, designed to allow owners to participate in network operations, increased 7% to 60 cents because it increased even more 16% in a week.

The XRP token in Ripple, a payment settlement asset exchange and remittance system, acts as a bridge for transfers between other currencies. XRP lost 2% falling below 42 cents but rose 3% in seven days.

Solana is a blockchain designed to make decentralized finance usable on a scale – and capable of processing 50,000 transactions per second. Its SOL token fell 6% to $ 44.70 and down 9% from last week.

The Meme DOGE coin was made as a satire on the hype surrounding cryptocurrencies, but is now a major player in the space. DOGE fell 1% to 8.6c, leaving it up 3% in a week.

Polkadot was founded by the Swiss-based Web3 Foundation as an open-source project to develop a decentralized web. Its DOT token, which aims to securely connect to blockchains, lost 2% to make a profit $ 10.27 and 2% higher than its price a week ago.

Avalanche is a fast-paced auditing platform for institutions, businesses, and government. his The AVAX token fell 8% to $ 25.53 and fell 11% in one week.

To find out how the values ​​of major coins have changed recently-and for a roundup of recent developments in cryptocurrency news-click here.

For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price changes, see below.

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