UK Government To Introduce Stablecoin Regulation in Early 2024
Crypto News

UK Government To Introduce Stablecoin Regulation in Early 2024

1m
Created 1yr ago, last updated 1yr ago

Stablecoin issuance and custody when done in or from the UK would become regulated activities under the Financial Services and Markets Act.

UK Government To Introduce Stablecoin Regulation in Early 2024
The UK government has announced plans to bring forward legislation to regulate certain cryptoassets known as stablecoins by early 2024.

In a policy update published today, HM Treasury outlined proposals to regulate the issuance, custody and use of fiat-backed stablecoins through amendments to existing financial services legislation. Fiat-backed stablecoins are cryptographic tokens designed to maintain a stable value by referencing fiat currencies like the pound or dollar.

Under the proposals, stablecoin issuance and custody when done in or from the UK would become regulated activities under the Financial Services and Markets Act. This would enable the Financial Conduct Authority (FCA) to authorize firms and make rules for the sector.

The use of stablecoins in payments would also fall under the regulatory perimeter through changes to the Payment Services Regulations 2017. This would cover payments from consumers and businesses using stablecoins issued either in the UK or overseas.

The Bank of England will have powers to oversee systemic stablecoin firms that could threaten financial stability. The Payment Systems Regulator would likewise regulate systemic stablecoin payment systems.

Stablecoin regulation forms the foundation for the UK's ambitions to be a global crypto-asset hub. The measures look to balance risks around these rapidly evolving technologies, enabling their potential benefits.

The proposals will now pass through the usual parliamentary processes before becoming law. The government aims to have stablecoin regulation in place sometime in 2024.

This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
5 people liked this article