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.

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