UK FCA Requests Feedback on Proposed Stablecoin and Crypto Custody Regulations
The Financial Conduct Authority (FCA) of the UK is seeking public feedback on proposed regulations for cryptocurrency and stablecoins. Key points include:
- New proposals require businesses to comply before launching stablecoins or providing crypto custody services.
- Collaboration with the Bank of England aims to establish a comprehensive regulatory framework for stablecoins.
- Stablecoin issuers must disclose asset management details to maintain value stability.
- Proposals aim to ensure secure and accessible crypto custody services, minimizing risks of firm collapses.
- Public feedback is open until July 31, 2025, with finalized rules expected in 2026.
David Geale from the FCA emphasized the importance of balancing innovation with market integrity. The Bank of England supports these proposals and plans to release a consultation paper addressing systemic stablecoins later this year.
This follows the UK government's recent decision against establishing a national crypto reserve and highlights the preference for collaboration with the US over the EU’s MiCA approach.