Today the Financial Conduct Authority (FCA) published two consultation documents, one on stablecoin issuance and crypto custody, and the other on a prudential regime for crypto-asset firms. Responses are expected by 31 July.
In April HM Treasury published draft regulations for crypto-assets and stablecoins, which placed foreign issuers of stablecoins outside the scope of regulations. Much of the detailed rulemaking is delegated to the FCA, and in the case of systemic stablecoins, to the Bank of England.
In today’s consultation, the FCA explicitly envisages one of the use cases for stablecoins as the settlement of wholesale or institutional transactions. Meanwhile, some of the rules in today’s proposals are relatively relaxed, particularly with respect to stablecoin reserves.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
