According to the Daily Planet, the UK Financial Conduct Authority (FCA) and the Bank of England are seeking opinions on the regulatory approach for stablecoins. James Kemp, managing director of technology and operations at the Association for Financial Markets in Europe (AFME), said that the UK's plan to bring stablecoins under the regulatory scope is a positive step, but raised concerns about the design of some rules. AFME suggested:
1. The geographical scope of regulated custody activities should not deviate from current market practice.
2. Crypto assets that qualify as specific investments should be treated as such throughout the regulatory framework.
3. The FCA’s approach to regulating crypto-asset custody should distinguish between the custody of crypto-assets that qualify as specific investments and the custody of other crypto-assets.
4. The standards for stablecoins regulated by the FCA and the Bank of England should not be overly restrictive.
5. Wholesale financial institutions must be able to easily access and use stablecoins issued overseas (such as USDC).
