Key facts:
- The US and the UK have two of the largest financial centers in the world.
- The United Kingdom is focused on preventing money laundering with cryptocurrencies.
In a bid to tighten regulatory measures on the trading and issuance of cryptocurrencies, the United Kingdom and the United States exchanged legislative approaches to stablecoins and central bank digital currencies (CBDCs).
Both countries agreed to increase “ties on financial innovation” and regulations, especially on stablecoins and the exploration of central bank digital currencies , UK Financial Conduct Authority (FCA) chief executive Nikhil Rathi said.
Both the United Kingdom and the United States have been putting the spotlight on stablecoins due to “recent events”. Although they do not mention these “events”, it can be inferred that it is the collapse of the stable currency terra USD (UST), a fact reported by CriptoNoticias.
In that sense, the United Kingdom assures that they and the United States “commit to continue cooperating to support safe innovation and strengthen regulatory results for stable currencies in all jurisdictions,” another document highlights.
“Regulatory engagement as part of that US-UK friendship is critical – we have two of the largest and most globally interconnected financial centers in the world,” Rathi commented.
Regarding the main focus of the FCA, Rathi said that, for now, it is limited to anti-money laundering regulations for cryptocurrency industry platforms. . He also assured that companies used to ask for fewer regulations and now “understand and appreciate that the rules are there to help provide certainty.”
Rathi added that the FCA supports cases of responsible use of the underlying technology. and that these activities are not done at the expense of adequate consumer protection or market integrity.