🇬🇧 UK’s Planned Stablecoin Rules Need Reworking, Crypto Advocates Say
Industry groups argue they see inconsistencies in regulatory plans by the Bank of England and the Financial Conduct Authority.
In November, the Bank of England (BoE) and Financial Conduct Authority (FCA) published discussion papers on their plans for regulating crypto pegged to the value of fiat currencies or other steady assets. The industry’s responses to the consultation reveal crypto advocates have mixed feelings about the proposals, saying that there are some good points, but a number of aspects need to be reconsidered.
Both regulators plan on supervising stablecoins. The FCA will regulate the issuance and custody of fiat-referenced stablecoins as well as the use of these as a means of payment. The BoE will oversee systemic payment systems involving stablecoins, which refers to stablecoins that are circulated widely enough to affect financial stability should their issuers go bankrupt.
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