LATEST: U.K. Authorities Seek Feedback on Stablecoin Regulation

The Bank of England (BoE) and the UK’s Financial Conduct Authority (FCA) are inviting feedback on their proposed regulatory approach for stablecoins in the U.K. They have expressed concern about the potential risks to financial stability posed by widespread use of stablecoins in retail payments. The BoE’s proposal aims to regulate operators of payment systems using stablecoins, issuers, and wallet providers to ensure safe innovation. Both discussion papers explore the benefits of stablecoins in terms of faster and cheaper payments. The UK is taking steps towards comprehensive crypto asset regulation, with feedback sought until February 6, 2024.

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