Two U.K. financial watchdogs, the Bank of England (BOE) and the Financial Conduct Authority (FCA), have published their plans to regulate stablecoins.
This is really the next stage of um the U K's plan to regulate stable coins and crypto assets more generally. And I think it's something the industry has been waiting for for for quite some time. Um So maybe just to take a step back and put these new publications in context. Um We've had various consultations over the past couple of years looking at, you know, what a regulatory regime for stable coins could look like in the UK. Um But actually the, the framework for for the regime was laid in the summer in the Financial Services and Markets Act 2023 which became law um earlier this year. Um Then at the end of October, we saw treasury so effectively the UK government coming out with its, you know, um latest publications about how it intends to create that, that regulatory framework within which then um these new publications from the reg data from the Bank of England and the FC A will sit. So there are a few layers to this. Um And I think this is really what the industry has been waiting for is not just to see, you know, what does the shape of the framework look like? But how are the regulators going to approach regulation of stable coins?