Five UK Associations Form Crypto Alliance to Steer Digital Asset Regulation

Five major U.K. associations have come together to form a crypto alliance geared at establishing better policies for the space, the group said Wednesday.

The members of the U.K. Forum for Digital Currencies (UK FDC) include the City of London Corporation,Digital Pound Foundation, The Payments Association and lobby groups TheCityUK and UK Finance.

The U.K.'s Financial Services and Markets Bill, which is set to give regulators in the country more power to regulate crypto, including stablecoins, is set to pass by April. Plus, the U.K. government wants to launch a consultation in the coming weeks regarding what other regulations need to be put in place for the sector. Policy makers have been calling for more regulation following the collapse of crypto exchange FTX.

The group also wants to help further the U.K.'s ambition to be a crypto hub, the statement said. It plans to both mitigate actual risks plus alleviate the perceived risks of crypto through education and will facilitate discussions between the financial services industry and crypto.

"While there are risks, the U.K. FDC recognises this growing interest and the adoption of new forms of digital money across the globe and how it will open many opportunities for the U.K. to remain competitive in FinTech, while leading financial innovation with the right regulatory framework," the statement said.

Read more: UK ‘Fully Behind’ Stablecoin for Wholesale Settlements, Treasury Official Says