UK Publishes Final Proposals for Crypto, Stablecoin Regulation

The U.K. government published its final rules for crypto and stablecoins on Monday.

The government plans on a phased introduction of crypto regulation, starting with fiat-backed stablecoins and then adding other crypto-related areas including algorithmic stablecoins.

Legislation on fiat-backed stablecoins is planned for introduction by early 2024, according to the document. These rules will bring certain activities relating to fiat-backed stablecoins under the purview of the Financial Conduct Authority (FCA).

The Treasury, the government’s finance arm, published a crypto consultation in February and the consultation closed in April. Economic Secretary Andrew Griffith said last year the country wanted to be a crypto hub, even after the collapse of crypto exchange FTX. Parliament passed the Financial Services and Markets Act 2023 in June, enabling crypto to be treated like a regulated activity.

The government also published its plans for stablecoins that could have an impact on financial stability on Monday. The central bank first launched its consultation on a regime for systemic stablecoins in May.