LONDON — The U.K. government will soon reveal plans to regulate the cryptocurrency market, focusing on a fast-growing type of token known as stablecoins, according to four industry sources familiar with the matter.

Sources tell CNBC that Rishi Sunak, British Finance Minister, will announce in coming weeks a new regulation for crypto. The information is not yet made public.

When CNBC asked the Treasury about its plans, it declined to answer.

Although details of these plans remain to be finalized, sources told CNBC that they were likely to benefit the sector. This will provide legal clarity in a sector which has been largely lacking in regulation.

The sources claim Treasury officials were open-minded to learning about the complicated crypto market.

The department is currently in talks with several trade organizations and firms. This includes Gemini crypto exchange by the Winklevoss brother, according to one source. Gemini has its own stablecoin, the Gemini Dollar. It is tied to the U.S. dollars.

In the last few years stablecoin usage has seen an exponential rise, along with growing interest in cryptocurrency more generally. Tether, the world’s largest stablecoin, now has a total circulating supply of more than $80 billion — up from about $4 billion two years ago.

Regulators are also concerned about these tokens because they could not be fully backed up by the equivalent number of reserves and can be used to launder money and do other illegal activities.

In the meantime, regulators worry about exposure to the financial system. bitcoinIt also includes the possibility of using them to avoid sanctions that Russia imposed upon its invasion in Ukraine.

BOE Deputy governor Sam Woods wrote an article letterAccording to CEOs of several banks, there is an “increased level” of interest by investment and banking firms in “entering different crypto markets.”

This is a response by President Joe Biden. executive orderSources claimed that they were calling for cooperation from U.S. federal agencies regarding regulation of crypto. Many industry professionals have complained about the absence of similar U.K. action.

Revolut, Blockchain.com, and Copper are some of the companies represented. could be forced to wind down their crypto operations in the U.K.This week, if they are unable to get onto the Financial Conduct Authority’s cryptoasset registry in time for Mar. 31 deadline.

FCA stated that a high number of crypto-businesses are not meeting anti-money laundering regulations. The register has only 33 companies. The regulator has screened more than 80 percent of the companies and rejected many.