UK extends stablecoin regulatory consultation period, seeks comprehensive feedback
The Bank of England and the Financial Conduct Authority have extended the deadline for feedback on stablecoin regulation to February 12, aiming for a comprehensive and comprehensive regulatory framework.
Bank of England (BOE) and Financial Conduct Authority (FCA) has actually extended the comment period on stablecoin regulation discussions in the UK, with a new deadline set for February 12th. The purpose of this extension is to gather more comprehensive feedback to help build a more comprehensive regulatory framework for cryptocurrencies in the UK. uk. The decision to extend the comment period reflects the UK’s commitment to creating a sensitive and comprehensive regulatory environment that takes into account the complexities of the evolving cryptocurrency markets.
BOE’s discussion paper focuses on the impact of introducing a British pound-backed, retail-focused stablecoin on the UK’s payments system, covering topics such as transfer capabilities, wallet provider requirements, and the overall goal of maintaining financial system stability and security. . On the other hand, the FCA’s discussion paper explores a wide range of stablecoin use cases beyond payment systems, including aspects such as auditing, reporting, prudential requirements, support and custodianship, and highlights the similar challenges faced by traditional financial services and cryptocurrency assets. Emphasizes the regulatory approach available. Risks are managed to similar standards.
The Association of European Financial Markets (AFME) submitted timely comments praising the UK’s regulatory proposals as a positive development, but calling for consistency in the regulatory treatment of security tokens. AFME recommends a cautious approach regarding the application of the proposed regulations to foreign-issued stablecoins, suggesting waiting until international frameworks and markets become more mature.
This initiative from the BOE and the FCA, together with industry feedback from organizations such as AFME, demonstrates the UK’s strategic and balanced approach to creating a regulatory environment for stablecoins and crypto assets. It aims to balance innovation and regulation and ensure a safe, efficient and innovation-friendly ecosystem for the development of cryptocurrency assets, while taking into account the importance of global coordination and establishing a level playing field internationally. .
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