New UK Crypto Rules Incoming
New UK Crypto Rules Incoming
Following our Conversation with Dilan Bastin about the FCAโs first Discussion Paper 25/1, this article takes a closer look at how the UKโs crypto regulatory framework is progressing with the release of the subsequent papers.
What are the two new FCA discussion papers?
๐ CP25/14 outlines standards for stablecoin issuance and cryptoasset custodyโbacked reserves, daily redemptions, and strong segregation rules.
๐ CP25/15 proposes a prudential regimeโcapital, liquidity, and risk controls for stablecoin issuers and custodians.
In a nutshell, the FCA sets clear standards: stablecoin issuers must offer daily redemptions and full asset backing held in trust. Custodians must segregate assets and ensure strong governance. New prudential rules (via COREPRU/CRYPTOPRU) require high-quality capital, with deductions for self-issued tokens. The framework scales with risk and aligns with global standardsโinviting industry input before final rules go live.
๐๏ธ Feedback open until 31 July 2025
โ
๐ก๐ช๐ต๐ฎ๐ ๐ถ๐ ๐ฐ๐ผ๐๐น๐ฑ ๐บ๐ฒ๐ฎ๐ป ๐ณ๐ผ๐ฟ ๐ฐ๐ฟ๐๐ฝ๐๐ผ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐๐ฒ๐?
๐ ๐ก๐ฒ๐ฒ๐ฑ ๐๐ผ ๐ฃ๐ฟ๐ฒ๐ฝ๐ฎ๐ฟ๐ฒ ๐ณ๐ผ๐ฟ ๐๐๐น๐น ๐๐ถ๐ฐ๐ฒ๐ป๐๐ถ๐ป๐ด Crypto-registered firms may soon need to meet more stringent standards similar to those of traditional financial institutions.
๐ ๐๐ ๐ฝ๐ฎ๐ป๐ฑ๐ฒ๐ฑ ๐ฆ๐ฐ๐ผ๐ฝ๐ฒMany business models not previously coveredโlike stablecoin issuance, staking services, lending/borrowing, and certain DeFi interactionsโare now in the FCAโs sights.
๐ If you operate in these areas, proactive engagement with the consultation is key.
๐๐ญ๐ญ๐ถ๐ด๐ต๐ณ๐ข๐ต๐ช๐ฐ๐ฏ ๐จ๐ฆ๐ฏ๐ฆ๐ณ๐ข๐ต๐ฆ๐ฅ ๐ฃ๐บ ๐๐ฆ๐ฎ๐ช๐ฏ๐ช
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