UK Treasury to Introduce Stablecoin Legislation Before August Break

The U.K Treasury, along with consultation from other regulatory bodies will introduce stablecoin legislation before the August summer break, said Deputy Bank of England (BoE) Governor Jon Cunliffe at a global banking conference on Wednesday. 

The treasury consulted the BoE, the Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) when conducting research for these new regulations. This decision has been the result of ongoing talks by the U.K. Treasury and its consultors. 

In April, they announced crypto would be regulated by the 2017 Payment Service Regulations, Financial Services Act and the 2011 Electronic Money Regulations Act. It also noted that more details would become available after running it by the BoE, FCA and PSR. 

In addition, Cunliffe said the committee of payments and market infrastructures (CPMI) will finalize guidance on global standards for systemic payment systems, around the same time as the stablecoin regulations are released. 

Some of the issues the U.K. Treasury will address include what assets should back stablecoins and how the redemption should process work. There is still a lot left to be decided, but the industry knows when regulations will be imposed on stablecoins from the U.K. Now the question is will the European Union and other countries follow suit? 

Author: Tyler Irvin

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