UK announces plans to regulate stablecoins by 2025
-
The Bank of England and Financial Conduct Authority published plans to regulate stablecoins in the UK. The BOE will oversee "systemic" coins, while the FCA handles the broader crypto sector.
-
The plans follow recent stablecoin proposals from big tech firms like Meta and PayPal, as well as Terra's collapse. The UK aims to become a crypto hub.
-
The BOE focuses on pound-pegged stablecoins likely to be widely used for payments. It may limit individual holdings of systemic coins.
-
The FCA requires authorization for fiat-backed stablecoins and wants full backing assets. Coins must be easily redeemable for fiat.
-
Final rules are expected by mid-2024, with regimes implemented in 2025. The bodies aim to distinguish stablecoins from deposits.