Market volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. in stablecoins will need to be taken into account, said the executive director of markets at the Financial Conduct Authority, alluding to Terra’s UST plunge.
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La Financial Conduct Authority UK regulator and the Treasury will examine the collapse of the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. ecosystem. Earth, which will serve as a study for him to create new rules for crypto assets, reported Bloomberg.
The recent market instability in the stablecoins “it will be absolutely necessary to take it into account”. when the Financial Conduct Authority work with the Treasury to create the rules by the end of this year, she told Bloomberg Sarah Pritchard, FCA executive director of markets.
“La innovación dura si funciona bien, y claramente, hemos visto las consecuencias y algunos de los problemas que pueden surgir”, dijo Pritchard, quien supervisa el trabajo de la FCA en cripto, en una entrevista a Bloomberg Wednesday. Nearly 70% of adults aged 40 and under who bought cryptocurrencies incorrectly assumed the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets were regulated, it said, citing a survey by Opinium published by the FCA in October.
Fall and consequences
On May 13, the Algorithmic Stable Currency currency is a medium of exchange that defines value.UST de Earth fell as much as 23 cents, and the token MOON, created to prevent the UST algorithmic stable coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. from being volatile, fell 96% at one point. An algorithmically stable currency is one that, in theory, maintains its parity using only software and rules which means it is not necessarily backed by collateral. Instead, the programming of the token, or smart contract, can increase the bid if the price is falling or decrease the bid if the price is rising.
The two tokens had a combined market value of more than USD $40 billion before the wipeout, which also wiped about USD $380 billion from the broader crypto sector.
“It really shows in the foreground the really important problems that exist here, both in terms of a well-functioning market an area or arena, online or offline, in which commercial dealings are conducted. and obviously in terms of consumer protection”. , Mrs Pritchard. “In the last week, where we saw significant price movements, that stands out and shows the importance of making sure people understand that that’s a risk of where they put their money.”
History of a regulation
In March, the UK said it would work on a new cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. regulatory package and planned to regulate stable coins. In its consultation, the government proposed not to regulate algorithmic stable coins.
In fact, in the annual speech of Queen Elizabeth of the United Kingdom, a few days ago, the possibility of making from this year onwards a more comprehensive regulation on the cryptocurrency sector.
The Treasury said in April that it intends to amend existing legislation for electronic money and payments firms to include the issuance of stablecoins and the provision of wallets, as well as custodian a custodian is responsible for safely holding assets for an institution or individual for a variety of purposes. services. Firms that engage in stable-currency activities could require Bank of England oversight, as well as FCA authorisation if their services are used by a large number of consumers, because of the systemic risks they could present, he said. Bloomberg.
Also, in March, the Advertising Standards Authority of the United Kingdom considered that 50 crypto companies they had to check whether they were in breach of the advertising rules.
Sources: Coindesk , Bloomberg , archivo
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