British regulators have identified the stablecoin market as their primary assignment amid efforts to create a legal framework for virtual currencies in the country.
John Glen, the United Kingdom's financial services minister, has said that stablecoins will be the main focus of the government’s crypto regulatory activity.
Glen made delivered his comments while addressing a conference organized by City & Financial Global on Tuesday, Reuters reported.
For Glen, the UK’s decision to prioritize stablecoins over regulating the broader financial market is due to fears of monopolies emerging in the market based on the limited number of participants offering fiat-pegged cryptocurrency payment services.
“There is the potential for some firms to swiftly achieve dominance and crowd out other players, due to their ability to scale and plug into existing online services,” Glen remarked.
Indeed, the minister’s argument echoes sentiments espoused by several financial regulators against the Diem stablecoin project. Ini