UK’s FCA Opens Crypto Floodgates: Will Stablecoin Rules Unleash a Financial Revolution?
he UK’s FCA is seeking public input on stablecoin and crypto custody regulations, aiming for a 2026 rollout. Could these rules make the UK a global crypto hub? Discover how this could transform digital finance!
n May 28, 2025, the UK’s Financial Conduct Authority (FCA) launched a public consultation on proposed regulations for stablecoins and crypto custody, targeting a 2026 implementation, per Crypto News. The FCA aims to create a clear framework to boost market trust, requiring stablecoin issuers to maintain stable value with transparent asset backing and custodians to ensure secure, accessible assets. The consultation, open עד July 31, 2025, invites feedback from issuers, payment providers, and custody platforms, per FCA’s press release.
Stablecoins, pegged to assets like the U.S. dollar, promise faster, cheaper cross-border payments via blockchain, as noted by FCA’s David Geale. However, risks like fraud and firm failures—evidenced by 2023’s crypto exchange hacks costing $1.7 billion globally—underscore the need for oversight. The FCA’s move follows a UK Treasury draft law in April 2025, with the Bank of England planning a complementary consultation later this year.
For beginners, this signals a safer crypto market but introduces compliance costs for firms. Investors should diversify and monitor feedback outcomes to navigate this evolving landscape, as the UK aims to become a crypto innovation hub.
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The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
