Research Summary
The article discusses the implications of the Financial Services & Markets Act 2023 on the regulation of stablecoins in the UK. The Act recognizes stablecoins as a form of payment and introduces new frameworks for their regulation. The Bank of England (BoE) is expected to publish proposals for regulating systemic stablecoins under the Act. The article suggests that stablecoins will likely be authorized in the UK before a digital pound or UK Central Bank Digital Currency (CBDC) is launched, possibly around mid-2024. The BoE is likely to follow international guidance in its approach to stablecoin regulation.
Actionable Insights
- Monitor the BoE’s forthcoming proposals for regulating systemic stablecoins: These proposals will provide further clarity on the regulatory landscape for stablecoins in the UK.
- Understand the implications of the Financial Services & Markets Act 2023: The Act introduces new frameworks for the regulation of stablecoins, which will impact how these assets are used and managed.
- Prepare for the potential authorization of stablecoins in the UK before a digital pound or UK CBDC is launched: This could present new opportunities for businesses and investors in the crypto space.
- Consider the international guidance on stablecoin regulation: The BoE is likely to align its approach with international standards, which could influence the direction of stablecoin regulation globally.
