According to the official statement, the UK government intends to change payment systems in order to monitor the use of stablecoins. This decision stems from the potential of specific stablecoins to gain widespread acceptance as a popular method of retail transactions.

At the same time, the authorities decided that other types of stablecoins that are not backed by fiat will remain unregulated. The Big Plan is to introduce a few stages of overseeing the industry in the future, starting with fiat stablecoins and then expanding to other types.

According to the official document, the authorities aim to commence regulation in early 2024. Under the new rules, oversight of fiat-backed stablecoins will be transferred to the UK Financial Conduct Authority (FCA).

This regulation move follows the adoption of a bill on the confiscation of crypto assets in the country. All these actions show citizens the government's commitment to stricter oversight of the cryptocurrency market. To learn more information about crypto regulation around the world you should check out these articles.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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