The UK’s Financial Conduct Authority (FCA) has said it will take the recent volatility and turmoil in the crypto markets into account when drafting regulation.
Sarah Pritchard, the executive director of markets at the FCA, said the UK’s financial regulator will “absolutely” evaluate the risk of stablecoins, such as USDT and USDC, de-pegging.
This comes hot on the heels of TerraUSD (UST) de-pegging from the dollar, costing holders billions of dollars.
Speaking to Bloomberg this week, Pritchard highlighted the importance of the FCA in protecting UK crypto investors and warned that “significant issues” exist in the crypto markets at present.
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“It really shows at front of mind the really significant issues that exist here, both in terms of a well-functioning market and obviously consumer protection,” she said.
“In the last week where we saw significant price movements, it brings that into the fore and it shows the importance of making sure that people understand that that is a risk of where they put their money.”
In April, Britain’s Economic and Finance Ministry announced that it would be preparing stablecoin regulations this year as part of its digital assets framework.
The move was generally well received by the cryptosphere, as it was perceived to be a sign that crypto is here to stay and the UK government was potentially ready to embrace cryptocurrencies.
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