OKX - World's Leading Digital Asset Platform for Secure Bitcoin & Ethereum Trading. Download Official APP for Professional Market Analysis & Trading Tools.
Download for Android Download for IOS
The UK's Financial Conduct Authority (FCA) has launched a public consultation on proposed regulations for stablecoins and cryptocurrency custody services. This move marks a significant step in establishing comprehensive rules for the digital asset sector, which currently operates largely unregulated in Britain.
David Geale, the FCA's Executive Director of Payments and Digital Finance, emphasized the regulator's dual objectives: "Our approach aims to foster beneficial innovation while ensuring market integrity and consumer trust remain paramount." The draft rules emerge from extensive industry engagement, including previous roundtable discussions with crypto businesses and stakeholders.
——The proposals represent the latest milestone in the UK's journey toward crypto regulation——
The FCA's framework includes specific requirements for stablecoin issuers to maintain value stability. 【Key provisions】 mandate clear disclosure of reserve asset management and redemption rights at par value. Issuers would need to process redemption requests within one business day of receiving valid claims.
The regulator also recommends independent third-party custody for reserve assets, aiming to prevent situations where stablecoins lose their peg to underlying currencies. Bank of England Deputy Governor Sarah Breeden confirmed complementary regulations for systemically important stablecoins would follow later this year.
For crypto custody providers, the FCA proposes new safeguards requiring continuous access to user assets and enhanced security measures. These rules address growing concerns about exchange failures and asset mismanagement in the crypto sector.
Interestingly, the consultation papers include measures to mitigate the impact of potential firm collapses. This comes as the UK government pursues broader ambitions to establish the country as a global leader in digital asset regulation.
Market participants and interested parties have until August 31 to submit feedback on the proposals. The FCA's move aligns with recent government announcements about developing a comprehensive crypto regulatory regime, signaling coordinated efforts across UK financial authorities.
As of press time, industry analysts note this consultation could shape final regulations expected to take effect in 2025, potentially influencing global standards for digital asset oversight.