UK Regulators Propose Stablecoin and Crypto Custody Rules to Boost Market Integrity

The Financial Conduct Authority and Bank of England have unveiled joint proposals to regulate stablecoins and cryptocurrency custody services. This marks the UK’s most significant step toward establishing clear rules for digital assets.

Stablecoin issuers will face stringent requirements under the new framework, including robust asset backing systems and transparent disclosure protocols. "We’re balancing innovation with consumer protection," said David Geale, the FCA’s payments chief, emphasizing the need for trust in the emerging sector.

The collaborative approach between Britain’s financial watchdogs signals growing institutional recognition of crypto’s role in modern finance. Stablecoins in particular are positioned as critical infrastructure bridging traditional and decentralized systems.