#hm-treasury

[rwatimes]

Bank of England Releases Stablecoin Rules, Sets 2027 Timeline

The Bank of England (BoE) has released a policy statement and draft rule framework for “systemic” pound-backed stablecoins, setting out how regulated issuers would operate under a proposed UK-wide regime. The publication is a significant step toward a dedicated stability-and-paym...

➤ The Bank of England has released draft rules for systemic pound-backed stablecoins, aiming for finalization by end-2026 and a 2027 rollout. ➤ Key changes include a 70% allowance for interest-bearing government debt in reserves and a £40 billion temporary issuance cap, replacing earlier individual holding limits. ➤ HM Treasury will designate systemic tokens, while the FCA will oversee non-systemic ones, creating a bifurcated regulatory approach.

[rwatimes]

UK crypto hub ambitions face regulatory delays as market framework lags U.S. and Europe

➤ The UK's ambition to become a crypto hub is hindered by slow regulatory progress and overlapping authorities, risking market outflow by 2027. ➤ Conflicting roles between HM Treasury, FCA, and Bank of England create operational uncertainty, potentially driving infrastructure and liquidity to faster-moving markets like the U.S. and EU. ➤ Industry concerns include lost business opportunities (e.g., Deribit) and an increased reliance on U.S. dollar-backed stablecoins, leading to a risk of dollarisation.

[rwatimes]

UK Plans Stablecoin Payments Rule Changes

UK plans payment rule changes to bring stablecoins and tokenized deposits into the same framework as traditional payment services.

➤ The UK government is updating payment regulations to integrate stablecoins and tokenized deposits into the existing framework for traditional payment services. ➤ This move aims to create a unified regulatory approach for both traditional and digital forms of money, avoiding a separate 'crypto' category for stablecoins. ➤ The proposed changes will include a consultation on reforms, new FCA powers over Open Banking, and aim to reduce administrative burdens for firms offering stablecoin payment services.