In a continued effort to assess how best to approach crypto asset regulation in the United Kingdom, HM Government has launched a consultation with a focus on stablecoins.
On 7 January 2021, HM Treasury released a document setting out a proposed policy approach to bringing stable tokens into the UK regulatory perimeter. If appropriate standards and regulation can be met, the Treasury considers that certain stablecoins have the potential to play an important part in retail. It proposes to introduce a regulatory regime for stable tokens used as a means of payment, which would cover firms issuing stable tokens and firms providing services relating to them, either directly or indirectly, to consumers.
This document marks the first stage in the Government's consultative process with industry and stakeholders, during which it aims to gauge views on how the UK can ensure its regulatory framework is equipped to harness the benefits of new technologies whilst mitigating risks to consumers.
Stakeholders are invited to provide their feedback on the Government's proposals, or more broadly, to submit their views on any issue relevant to the UK's approach to crypto assets and DLT.
The consultation closes at 11:59 PM GMT on 21 March 2021.
If appropriate standards and regulation can be met, the Treasury considers that certain stablecoins have the potential to play an important part in retail.