- The bill will provide standards for utilizing stablecoins.
- The regulator will have the authority to refund the victims.
UK finance minister Zahawi announced that the long-awaited financial services and markets bill would be presented before parliament on Wednesday, in order to capitalize on the benefits of Brexit and transform the UK financial services sector.
The bill focus to provides standards for utilizing stablecoins, a form of crypto assets, for payments, the bill will crack down on fraudsters while providing those needy individuals and making sure rural areas have access to funds.
At the annual Mansion House bankers’ dinner, Nadhim Zahawi said that
Consumers will remain protected, with legislation ensuring that victims of scams can be compensated while also acting to protect access to cash for the millions of people that rely on it.
The Bill For Financial Protection
A plan for increased government control of financial regulators’ activities and cryptocurrency regulation has been put on hold for a time while but still British financial regulators are required to support the financial sector’s ability to compete globally.
Through the bill, when fraudsters mislead people into giving them money, this is known as authorized push payment fraud and the Payment Systems Regulator will have the authority to refund the victims.
The government said the bill needs to include relevant information about how the regulators will be held responsible for the competitiveness issue, else it won’t result in the necessary change in regulatory culture. However, some Legislators worry that this could indicate a return to the permissive regulation that led to the bailout of banks during the financial crisis.
Part of the bill transfers EU-inherited legislation to British regulators’ rulebooks, making future amendments easier but also giving the watchdogs much more power at the expense of parliament.