UK Regulators to Introduce Rules for Stablecoins in New Markets Bill

The much-anticipated financial services and markets bill to be presented to Parliament includes rules for the use of stablecoins as a means of payment.

AccessTimeIconJul 20, 2022 at 11:04 a.m. UTC
Updated May 11, 2023 at 6:24 p.m. UTC

Regulators in the U.K. are introducing rules for using stablecoins – cryptocurrencies whose prices are pegged to another asset – as payment tools to Parliament on Wednesday.

The rules are part of a long-awaited financial services and markets bill, aimed at strengthening the U.K. financial system post-Brexit, set to be presented to Parliament in the coming hours.

The government has previously said crypto will play a part in the country's broader post-Brexit strategy to increase economic competitiveness. In April, the U.K. Treasury announced a set of initiatives to help turn the country into a global crypto hub. The announcement promised new rules that would let consumers confidently use stablecoins for payments.

But a dramatic crypto market downturn, followed by the resignations of crypto-friendly finance minister Rishi Sunak and senior Treasury official Jon Glen, threatened to shake up the plans.

In May, the collapse of $18 billion stablecoin terraUSD prompted the Bank of England, the U.K.’s central bank, to publish a consultation on its plans to regulate similar crypto assets and to propose the bank be given the power to appoint administrators to oversee insolvency procedures for failed stablecoin issuers.

Earlier this month, Bank of England Deputy Governor Jon Cunliffe hinted at a delay on crypto regulations in light of the cabinet reshuffle, but promised stablecoin rules before the August summer break.

Explaining the new bill during his first speech as the newly appointed finance minister on Tuesday, Nadhim Zahawi said the framework “reinforces the U.K.’s position as a leading center for technology as we safely adopt crypto assets.”


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She does not own any crypto.