The UK Treasury plans to empower the Financial Market Infrastructure Supervisor (FMI SAR) to oversee the safe return of funds in the event of a stablecoin crash.
HM Treasury has proposed a new set of regulatory changes for the stablecoin industry. The report highlights the importance of this type of digital asset in innovation and notes the ability to influence financial stability in the event of systemic failures.
The Treasury has proposed making the FMI SAR, which is controlled by the Bank of England, the main body to address a potential systemic disruption for stablecoin issuers, digital wallet providers and third-party payment processors. It is proposed to expand the powers of the organization to oversee the timely return or transfer of customer funds in the event of bankruptcy of the issuer of digital assets.
The Treasury believes that the Bank of England should be given greater powers to manage administrators and create rules in support of FMI SAR. The Treasury argues that empowering the FMI SAR would enable it to respond quickly to requests from users who have lost access to funds, as well as ensure the continuity of this work.
Earlier it became known that the British Ministry of Finance is developing a plan of legislative initiatives, which should make the UK a leader in the technology and innovation market.
