The Financial Conduct Authority (FCA) has published a consultation on the first phase of regulating cryptoassets regarding stablecoins.
The FCA is inviting feedback on its published discussion paper on developing the regime for fiat-backed stablecoins including when used as a means of payment.
The discussion paper provides information on:
- The new UK stablecoin regime;
- Requirements for issuers: backing assets and redemption;
- Regulated stablecoin issuers: other key expectations;
- Custody requirements;
- Organisational requirements;
- Conduct of business and consumer redress;
- Prudential requirements;
- Managing regulated stablecoin issuers and custodian firm failures;
- Regulating payments using stablecoins; and
- Overseas stablecoins used for payments in the UK.
The FCA, in partnership with the Bank of England (BoE) the Prudential Regulation Authority (PRA) has also published a cross-authority roadmap on innovation in payments, money and money-like instruments explaining the interaction of UK authorities’ current and proposed regulatory regimes.
Firms are invited to provide their feedback to the FCA consultation by 6 February 2024.