UK Releases its Final Proposal for Stablecoin and Crypto Rules
UK sets stage for crypto regulation, starting with fiat-backed stablecoins in 2024, marking steps towards becoming a sought-after crypto hub.
The UK government unveiled its final rules on crypto and stablecoins recently. It aims for a step-by-step approach to crypto regulation, initiating with fiat-backed stablecoins before expanding to other crypto sectors including algorithmic stablecoins.
The regulation of fiat-backed stablecoins is planned for early 2024, which will bring certain activities under the oversight of the Financial Conduct Authority (FCA).
Earlier this year, the Treasury opened a crypto consultation which concluded in April. Economic Secretary Andrew Griffith expressed the nation's ambition to become a crypto hub, even with past problems like the fall of crypto exchange FTX. The Financial Services and Markets Act 2023 passed in June, setting the stage for crypto to be seen as a regulated activity.
Additionally, the government shared its vision for stablecoins and their potential effect on financial stability. This follows the central bank's initial consultation on a regime for systemic stablecoins launched in May.
