{"id":24663,"date":"2023-11-06T20:38:39","date_gmt":"2023-11-06T20:38:39","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/uk-stablecoin-regulation-begins-to-take-shape-in-multiple-fca-boe-documents\/"},"modified":"2023-11-06T20:38:41","modified_gmt":"2023-11-06T20:38:41","slug":"uk-stablecoin-regulation-begins-to-take-shape-in-multiple-fca-boe-documents","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/uk-stablecoin-regulation-begins-to-take-shape-in-multiple-fca-boe-documents\/","title":{"rendered":"UK stablecoin regulation begins to take shape in multiple FCA, BOE documents"},"content":{"rendered":"
A suite of documents was published in the United Kingdom on Nov. 6 that concern stablecoin regulation. The Financial Conduct Authority (FCA) released a discussion paper, as did the Bank of England (BOE). To accompany those, the BOE\u2019s Prudential Regulatory Authority (PRA) released a letter to CEOs of deposit-taking institutions, and the BOE released a \u201ccross-authority roadmap\u201d to link them together.<\/p>\n
His Majesty\u2019s Treasury set the stage for the flurry of releases on Oct. 30 with a short document previewing plans for regulation. The FCA paper explored the same ground in much greater detail.<\/p>\n
Stablecoin regulation is the first step to broader crypto asset regulation, the FCA said. The discussion paper outlined potential retail and wholesale stablecoin use cases. Its discussion included auditing and reporting, the backing of coins owned by the issuer and the independence of the backing assets\u2019 custodian.<\/p>\n
The paper concentrated on ways in which the principle of \u201csame risk, same regulator outcome\u201d could be applied. It proposed using the existing client assets regime as the basis of rules on redemption and custodianship and the senior management arrangements, systems and controls sourcebook to organize business affairs. There are existing operational resilience and financial crime frameworks, as well as numerous others.<\/p>\n
\nThe UK FCA is proposing that stablecoin holders have the right of direct redemption. Which makes issuers a lot more like banks and will raise a bunch of AML\/KYC issues for issuers pic.twitter.com\/lZLQXlmemu<\/a><\/p>\n