Stablecoins Under Scrutiny: FCA’s Big Move Raises Key Questions

The Financial Conduct Authority has launched a public consultation to shape the UK’s regulatory framework for stablecoins and crypto custody services. Stakeholders have until July 31, 2025, to submit feedback on proposals designed to enhance payment efficiency while enforcing transparency and reserve requirements.

The FCA’s initiative aligns with the UK Treasury’s draft legislation, signaling a concerted effort to finalize digital asset regulations by 2026. Strong governance and risk controls are emphasized as non-negotiable pillars for crypto custody services.

Market participants await the Bank of England’s separate consultation on stablecoins, expected later this year. The dual-track approach underscores the UK’s ambition to balance innovation with consumer protection in digital asset markets.