The UK Economic Secretary to the Treasury, Lucy Rigby, has announced a package of fintech measures including several that cover tokenization. As reported last week, the government has made a U-turn and now intends to integrate stablecoins into payment regulations alongside a new stablecoin statutory instrument. Chris Woolard, an EY partner, has been appointed as the government’s new Wholesale Digital Markets Champion.
Integrating stablecoins with payment regulations is a critical step in providing legal clarity, including settlement finality for institutional use cases. Last week the Financial Conduct Authority announced another crypto-asset consultation, which included stablecoin issuers. The intention is for the UK’s crypto regulations to come into force in October 2027, which would mean two rounds of compliance for stablecoin issuers as they await the new payment regulations.
To try to lighten the issuer regulatory burden, today HM Treasury tabled a statutory instrument (SI) which would mean that UK qualifying stablecoin issuers would not have to comply with certain aspects of the regulations that come into force next year.
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