The UK Treasury has finalized its regulatory approach to the crypto industry, with a phased introduction set to begin in early 2024. The first phase will focus on regulating fiat-backed stablecoins, which are digital currencies that maintain a stable value by referencing traditional fiat currencies. The government aims to facilitate and regulate the use of these stablecoins within the UK’s payment chains, recognizing their potential as a means of retail payment. The Financial Conduct Authority (FCA) will have primary oversight of stablecoin activity, with additional supervision from the Payment Systems Regulator (PSR) and the central bank. The second phase of regulation will extend to a broader range of cryptoasset activities, including exchange activities, custody activities, lending activities, and market abuse. The UK government intends to create a comprehensive regulatory framework for these activities, while also supporting decentralized finance (DeFi) and avoiding premature regulation that could stifle growth and innovation. The publication of this regulatory framework marks a significant milestone in the UK’s journey to establish itself as a leading global destination for crypto-asset businesses.

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Information	Details
Geography	Europe
Countries
Sentiment	positive
Relevance Score	1
People	None
Companies	and institutions: Bank of England, Payment Systems Regulator (PSR), Financial Services and Markets Act 2000., Financial Conduct Authority (FCA), The text references the following companies, organizations, Payment Services Regulations 2017
Currencies	Bitcoin, Ethereum
Securities	None