Bitcoin Price Targets Below $35,000 as UK Continues Crypto Regulations
Bitcoin price is once again aiming for below $35,000, signaling a continuation of its volatile trend. Despite moving away from a period of boring and shallow volatility, the inability of BTC to surpass $36,000 suggests a return to similar sideways market days. On the other hand, regulators are still working on cryptocurrencies.
UK and Cryptocurrencies
When Rishi Sunak took office, cryptocurrency investors rejoiced. His statements about NFTs and cryptocurrencies indicated a more moderate approach in this field. However, today nobody remembers Sunak’s comments on cryptocurrencies. The crypto-friendly president has not contributed to the industry and is focused on more important matters.
Meanwhile, popular UK banks continue to make it difficult for cryptocurrency platforms to process transfers. The regulatory authority, FCA, has forced crypto companies that do not comply with the new rules to pause their operations.
UK and Stablecoins
Today’s agenda is the step taken by the Bank of England and FCA regarding stablecoins. The institutions have started to gather feedback on regulations related to stablecoins. The BoE stated that regulating stablecoins is necessary to avoid potential risks to financial stability. The announcement emphasized the determination on regulations.
“If payment systems using stablecoins are widely used for individual payments in the UK, they can pose a risk to financial stability.”
Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, stated the following:
“Our proposals aim to enable firms to understand the risks they need to manage and to ensure public trust in all forms of digital money and payment by supporting secure innovation.”
After gathering feedback on potential risks and benefits, the institutions will discuss the steps to be taken in this regard. Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:
“Stablecoins have the potential to make payments faster and cheaper for everyone, and therefore, we want to provide companies with the opportunity to use this innovation safely and securely. We request feedback to establish proportionate rules that benefit consumers and firms while meeting our objectives.”
The UK Treasury published its latest proposals on crypto regulations last month and defined the FCA’s supervisory authority over stablecoins.
