UK plans to introduce fiat-backed stablecoin rules in early 2024 – Crypto News – Crypto News
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UK plans to introduce fiat-backed stablecoin rules in early 2024 – Crypto News

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3 years ago

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The U.K. intends to introduce rules on fiat-backed stablecoins in early 2024, according to the government’s latest cryptocurrency policy update published on Monday. 

See related article: Singapore, Thailand clarify crypto rules; NFTs become new cultural frontier

Fast Facts

  • HM Treasury, or the finance ministry, said it plans a phased introduction of crypto regulation, starting with fiat-backed stablecoin rules in phase one. The second phase will include regulations on other crypto assets such as algorithmic stablecoins. 
  • The new rules will place fiat-backed stablecoins under the purview of the Financial Conduct Authority (FCA).
  • The FCA will also be tasked with creating rules on custody of fiat-backed stablecoins, based on the existing custody framework.
  • The finance ministry said it plans to ensure the FCA can mandate that assets backing fiat-backed stablecoins are held in a statutory trust.
  • The Treasury’s latest policy update follows a public consultation period that ended in April. The ministry published a consultation paper in February.
  • The U.K. is the world’s third-largest economy in terms of crypto transaction volume, according to on-chain intelligence firm Chainalysis.

See related article: Blockchain tech in Thailand gets boost from new pro-crypto lead

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