FCA DISCUSSION PAPER ADVANCES UK STABLECOIN FRAMEWORK

Summary from the TLDR Crypto newsletter

The UK Financial Conduct Authority (FCA) has continued to work on regulations for fiat-backed stablecoins, including those issued outside the UK. In a recent paper, the FCA highlighted the potential of stablecoins for efficient payments, but also noted previous crypto custody failures such as Celsius and FTX. The regulator proposed requirements for issuing fiat-backed stablecoins and custody activities. The FCA also suggested that issuers should guarantee specific redemption timeframes for users.