The Treasury Department of the United Kingdom has revealed it is drafting proposals to regulate private stablecoins while also researching central bank digital currencies, or CBDCs, as an alternative to cash. In an announcement published on Nov. 9, U.K. Treasury Chancellor Rishi Sunak noted the forthcoming regulatory proposals alongside other goals for the country’s financial services industry — including a review of the U.K.’s listings regime and support for green finance. “New technologies such as stablecoins — privately-issued digital currencies — could transform the way people store and exchange their money, making payments cheaper and faster.” The news comes amid …

From what started as something of a “technological experiment” with Bitcoin (BTC) over a decade ago, the crypto asset industry has become a significant driver for change in global financial markets. Cryptocurrency exchanges started as a means to enable crypto enthusiasts to trade digital coins outside the traditional financial system on a decentralized and largely autonomous basis. It is likely that combined with regulatory recognition and development of digital market infrastructures, acceptance of essential Anti-Money Laundering practices, investment in security protection systems, and recognition of investor protection measures will see these businesses continue to expand and potentially merge or compete …

Canada doesn’t want any "surprises" regarding central bank digital currencies. In a recent interview with Reuters, Bank of Canada Governor Tiff Macklem doubled down on the country's contingency-plan approach to CBDCs, stressing that he sees no urgent need to issue one right now. For Macklem, inter-state competition and coordination remains the key question when it comes to CBDC issuance. He told reporters: “If another country has one and we don’t, that could certainly create some problems. So we want to make sure we’re ready. Currencies move across borders, and so we certainly wouldn’t want to be surprised by some other …

At the 2nd Bund Summit held on Oct. 25, Bank of England fintech director Tom Mutton stated that while a central bank digital currency, or CBDC, was “a focus” for the Bank of England, the position the bank had taken this past March hadn’t changed. “We haven’t made any decision on whether or not to launch a retail CBDC,” said Mutton. “But we are exploring the pros and cons with interest.” Specifically, the BoE exec stated the central bank was looking into payment options for people in the U.K. who were affected by the COVID crisis “to deliver safe, efficient …

Law enforcement officials from around the world hav taken action against a major transnational money laundering operation involving cryptocurrency. On Oct. 15, Europol announced a successful operation across 16 countries that resulted in the arrest of 20 individuals suspected of working for the QQAAZZ criminal network. The organization is accused of laundering tens of millions of euros for top cybercriminals since 2016. The funds are allegedly transferred through international bank accounts, shell companies based in Poland and Bulgaria, and via cryptocurrency mixing services. Around 40 homes were searched across the United Kingdom, Spain, Italy, Latvia, and Bulgaria as part of …

Last week’s blanket banning of cryptocurrency derivatives by the United Kingdom’s Financial Conduct Authority ignored 97% of respondents to its consultation, according to the FCA’s own policy statement. The 527 respondents included exchanges and companies involved in crypto assets and derivatives, trade bodies, national competent authorities, legal representatives and individuals. The 97% who opposed the FCA proposed ban argued that crypto assets do have intrinsic value, retail investors are capable of assessing this value, and that other measures could achieve the desired results without applying a “disproportionate” ban. In his blog, Attack of the 50 Foot Blockchain, crypto-sceptic David Gerard …

Bank of England Governor Andrew Bailey’s position on crypto apparently hasn’t changed despite the economic fallout of the pandemic. According to an Oct. 12 report from Reuters, Bailey spoke at a Bank of England, or BoE, question and answer session with members of the U.K. public on Monday. At that time, he stated that he was “very nervous” about people using Bitcoin (BTC) for payments. The governor said people should consider the asset's volatility when it came time to invest. “I have to be honest, it is hard to see that Bitcoin has what we tend to call intrinsic value,” …

The Winklewoss twins' crypto exchange Gemini is continuing to consolidate its regulated services for clients in the United Kingdom. On Oct. 12, Gemini announced a partnership with BCB Group — a European crypto-focused payment processor that already works with major platforms such as Coinbase, Bitstamp and Galaxy Digital. BCB Group is focused on institutional payments services and offers business accounts and crypto market liquidity for "crypto-engaged" financial institutions. The Group's core subsidiary was officially approved by the Financial Conduct Authority as an authorized payment institution (API) earlier this year. Collaborating with BCB is intended to provide Gemini's clients in the …

John McAfee’s recent detention in Spain caps off a few weeks where crypto news feeds have been dusted with reports of regulator enforcement actions and bans, arrests, and an exchange hack. Crypto news hasn’t looked like this in a while. The terrain of the crypto sector may once have been blighted by exit scams and cowboys, but the post-BlockFi, post-Grayscale crypto landscape is an entirely different beast. Does the recent spate of stories related to crime and legal proceedings suggest that the sector is being mopped up for a brighter future? Are regulators only now catching up? Or does it …

Following the definitive ban of cryptocurrency derivatives in the United Kingdom, cryptocurrency companies in the country shared their thoughts on the matter with Cointelegraph. Among the most affected is CoinShares, a U.K. company known for providing cryptocurrency exchange-traded notes, or ETNs. Unlike exchange-traded funds, ETNs do not necessarily own the underlying asset and are instead a way of tracking the returns of a particular index. When they mature, holders pay or receive the difference between the initial purchase price and the return of the underlying index. Crypto ETNs fell under Tuesday’s broad ban by the Financial Conduct Authority, along with …

In a landmark decision issued on Tuesday by the United Kingdom’s Financial Conduct Authority, companies in the country will no longer be able to offer cryptocurrency derivatives products such as futures, options and exchange-traded notes, or ETNs, to retail customers. The decision comes almost exactly one year after the regulator first proposed banning these products. In a statement released by the FCA, the regulator claimed that cryptocurrency derivatives are “ill-suited for retail consumers due to the harm they pose.” Several reasons are provided for more detail, including concerns that they have “no reliable basis for valuation,” are subject to abuse …

Rep. David Schweikert, a Republican congressperson from Arizona, has referred a new bill to the House Committee on Energy and Commerce that, if passed, would recognize digital signatures on the blockchain as enforceable by law. This is particularly important for the enforceability of smart contracts, which automate transactions or other contractual obligations according to binding, pre-specified rules. Smart-contract advocates have long used the adage "Code is law," and the new bill, if approved, could make this a statutory reality. According to public records, the bill was referred to the committee on Friday. A summary of the bill, H.R. 8524, outlines …