The UK Treasury has proposed legislation to regulate cryptocurrency companies.
The consultation paper was released on May 31 after the collapse of Terra LUNA crypto and UST stablecoin, sending the entire industry into a tailspin.
The paper highlighted the importance of stablecoins for innovation, but also their impact on broader financial stability in the event of a system failure.
He called for changes to the existing legislation related to the Special Financial Market Infrastructure Management System (FMI SAR), which was established to address the risks of system failures of payment systems.
The proposed new rules would give the Bank of England control over cryptocurrency companies, with the power to appoint an administrator in the event of default.
In addition to the mandate to ensure continuity of service for companies that are insolvent, the changes would include an additional objective to ensure the return or transfer of funds and assets from customers on deposit, according to the document.
“Continuity of service may not be sufficient to mitigate financial stability risks from the failure of a systemic corporate DSA (Digital Settlement Assets), particularly where large numbers of individuals could lose access to the funds and assets they have chosen to as DSAs,” the paper said.
A DSA may include stablecoin issuers, wallet providers, and third-party payment providers.
“The government believes it is important to ensure that existing legal frameworks can be effectively applied to manage the risks of the possible failure of systemically important DSA companies for financial stability,” it also reads.
The consultation period will end on 2 August and will be presented to the House of Representatives at a later date.
Forbes has suspended plans to go public through a SPAC merger, The New York Times reports. Crypto exchange Binance unveiled a $200 million investment in Hong Kong-based media and front company Magnum Opus Acquisition in February. A merger would have valued Forbes at $630 million, but the decision to pull out has reportedly been made due to SPAC’s recent poor performance.
The South Korean government has approved a £117.1 million investment for central metaverse projects. It is already building a metaverse platform to provide virtual public services to citizens and plans to create a “K-metaverse academy” to support metaverse startups around the world, aiming to produce 40,000 professionals in the space by 2026.
Singapore authorities have launched a pilot digital asset program to explore the potential of decentralized finance – “Project Guardian” – in partnership with JP Morgan, Marketnode and DBS Bank.
According to a new report from Arcane Research, active users of major Ethereum-based blockchain games — including Axie Infinity, The Sandbox, and Decentraland — are down 96% from their November 2021 peaks.
The total market cap of over 19,600 coins is $1.3 trillion at the time of writing (7am UK)down 1% in the past 24 hours.
Bitcoin Market Leader – tan original cryptocurrency created by the mysterious Satoshi Nakamoto – slightly down to about $31,600. BTC is 6% increase in a week.
Ethereum, the Second Most Valuable Cryptocurrency – Made as Announcementdecentralized network for smart contracts on the blockchain – fell 3% to $1,930. ETH is down 3% in a week.
Binance Coin is a cryptocurrency created by the popular crypto exchange Binance to help it become the infrastructure service provider for the entire blockchain ecosystem. The BNB token fell slightly to $318, dropping it by 4% in seven days.
Cardano is an open-source network that facilitates dApps and sees itself as an updated version of Ethereum. The ADA token, designed to enable owners to participate in the operation of the network, added 7% to 60 cent is still up 16% over the course of a week.
Ripple’s XRP Token, a payment arrangement asset exchange and remittance system, acts as a bridge for transfers between other currencies. XRP lost 2% to fall below 42 cents but rose 3% in seven days.
Solana is a blockchain designed to make decentralized finance widely accessible – and capable of processing 50,000 transactions per second. The SOL token fell 6% to $44.70 and is down 9% from a week ago.
The Meme DOGE coin was created as a satire on the hype surrounding cryptocurrencies but is now a major player in the space. DOGE fell 1% to 8.6c, pushing it up 3% in a week.
Polkadot was founded by the Swiss-based Web3 Foundation as an open-source project to develop a decentralized web. Its DOT token, which aims to securely connect blockchains, lost 2% in profit $10.27 and is 2% higher than the price a week ago.
Avalanche is an extremely verifiable platform for institutions, companies and governments. To be The AVAX token fell 8% to $25.53 and is down 11% in a week.
To see how the valuations of major coins have changed lately – and for an overview of recent developments in cryptocurrency news – click here.
For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price changes, see below.