UK's FCA requests comments on stablecoin and crypto custody rules
The UK’s Financial Conduct Authority (FCA) is seeking public feedback on proposed regulations for stablecoins and cryptocurrency custody. The draft rules aim to support innovation while ensuring market integrity and consumer trust, as crypto remains largely unregulated in the UK. The FCA plans to collaborate with the Bank of England to regulate stablecoins, emphasizing the need for stablecoins to maintain their value and for issuers to provide clear information on backing assets. Issuers may be required to appoint independent custodians and allow holders to redeem stablecoins at par value. Additionally, new requirements for crypto custody services will ensure user assets are secure and accessible. These proposals are part of a broader initiative to establish a comprehensive regulatory framework for the UK’s crypto sector.
