Digital Assets/Crypto
AML/CTF/CPF
Industry News
➡️ The consultations follow HM Treasury’s draft legislation published in April 2025 and represent a significant step in the UK's roadmap for crypto regulation.
➡️ The proposals on stablecoin issuance notably cover requirements for backing assets, trust arrangements, reconciliation and redemption requirements, AML/KYC obligations, distinct treatment compared to e-money, and a prohibition on paying interest.
➡️ The proposals on cryptoassets custody include requirements for appropriate segregation, daily reconciliation, management of private keys, use of third-party custodians and arrangements for the return of client assets in case of insolvency, amongst others.
➡️ The proposals for a sector-specific cryptoasset prudential regime aim to reduce the likelihood and impact of firm failures across regulated firms undertaking regulated services, with a focus on the issuance of stablecoins and the custody of cryptoassets, with further consultations expected to cover other activities.
🗓️ Firms have until 31 July 2025 to submit feedback on the proposals using the designated channels.
💡 Plenitude’s Digital Assets Services support cryptoasset service providers #CASPs navigate the licensing and registration process, ensuring ongoing compliance while minimising operational disruption. Visit our website for more information: https://www.plenitudeconsulting.com/services/digital-assets-practice
