The Financial Services and Markets Bill introduced in the U.K. parliament on Wednesday seeks to regulate stablecoins as a means of payment.
See related article: Financial Stability Board calls for high regulatory standards for stablecoins
Fast facts
- The legislation was largely awaited as it aimed at strengthening the U.K. financial system post-Brexit.
- In April, then-Chancellor of the Exchequer Rishi Sunak said he aimed to make the U.K. a “global hub for crypto asset technology.”
- Discussing the bill in a speech, the newly appointed chancellor of the exchequer Nadhim Zahawi said the framework “reinforces the U.K.’s position as a leading center for technology as we safely adopt crypto assets.”
- The legislation extends the oversight of the Bank of England over digital asset service providers and implements payment system regulations on crypto service providers.
- The legislation also gives the Treasury the power to introduce new or change old regulations to regulate stablecoins.
- However, the Treasury must consult with the Financial Conduct Authority (FCA), the Bank of England, and the Payment Systems Regulator when creating or changing stablecoin regulations.
See related article: Regulators and the problem of unstable stablecoins