The UK government has released a policy update outlining the regulation of fiat-backed stablecoins in the country. The update focuses on two areas: the use of stablecoins in payment chains and their issuance and custody within the UK. The Bank of England, the Financial Conduct Authority (FCA), and the Payment Systems Regulator (PSR) will all play a role in regulating stablecoins. The government aims to minimize potential harm to customers and mitigate risks related to conduct, prudential matters, and financial stability. The FCA and the BoE will supervise firms recognized as systemic, with the BoE acting as the lead prudential regulator. The UK’s legislation on crypto is set for 2024, following the passing of the Financial Services and Markets Act 2023. This policy update is intended to prepare government agencies and regulators for the upcoming regulations.

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Information	Details
Geography	Europe
Countries
Sentiment	neutral
Relevance Score	1
People	None
Companies	FCA, HM Treasury, Bank of England (BoE), Payment Systems Regulator (PSR)
Currencies	None
Securities	None