The content is a discussion paper (DP) released by the UK Treasury to develop a regime for fiat-backed stablecoins, specifically when used as a means of payment. The Treasury aims to define fiat-backed stablecoins in legislation and is considering changes to payments legislation to enable retail payments using these stablecoins. The DP will be part of a joint publication package with the Bank of England’s Discussion Paper on systemic payment systems using stablecoins and the Prudential Regulation Authority’s Dear CEO letter on innovative uses of deposits, e-money, and stablecoins. The intended audience includes individuals and organizations involved in the cryptoasset sector, such as stablecoin issuers, custody providers, payment service providers, industry groups, professional advisors, consumer groups, policy makers, regulatory bodies, industry experts, commentators, academics, and think tanks. Feedback on the DP is requested by February 6, 2024, and the government plans to legislate for a future financial services regime for cryptoassets, starting with fiat-backed stablecoins. The regulation will cover the issuance and custody of these stablecoins under the Financial Services and Markets Act 2000 and their use as a means of payment under the Payment Services Regulations.
HomeDIGITAL ASSETS REGULATORYregulation uk newsRegulating Cryptocurrencies: Initial Phase of Oversight for Stablecoins