Crypto’s growing footprint: UK regulator sounds alarm over stablecoin risks

United Kingdom regulators are increasingly concerned about the impact of stablecoins and the broader crypto industry on the country’s financial system and monetary stability. During Financial Policy Committee meetings held on April 4 and 8, regulators noted that while the current “interconnectedness of unbacked crypto asset markets with the real economy and financial sector is growing but remains relatively limited,” stablecoins and crypto markets have expanded significantly in the past year, drawing heightened regulatory attention. The UK, its central bank and its local regulator, the Financial Conduct Authority, have been developing frameworks for stablecoins to ensure financial resilience. The committee claims to have determined the factors that make a stablecoin resilient:“A key determinant of the resilience of stablecoins was the liquidity, credit and market risks of their backing assets, which were in place to ensure that redemptions can be met in a timely manner at par, even in periods of stress source: https://cointelegraph.com/news/crypto-s-growing-footprint-uk-regulator-warns-on-stablecoin-risks-and-regulatory-gaps?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound