The UK’s Financial Conduct Authority (FCA) just dropped a bombshell, and opened the floor for public comments on some fresh, tough-as-nails regulations.
These new rules are aimed squarely at stablecoin issuers and crypto custody providers. The so called wild west of crypto in the UK might finally be getting a sheriff.
Oversight is a must
Now, David Geale, the big shot in charge of payments and digital finance at the FCA, laid it out plain and simple, and told that no more flying under the radar.
“We want to back innovation, sure, but we gotta make sure the market’s built on trust and integrity.”
Crypto’s been running loose, but the FCA wants to put some rules down without killing the creative spirit.
And it’s not just the FCA playing the heavy. The Bank of England’s Deputy Governor, Sarah Breeden, chimed in, saying the Bank will roll out its own consultation later this year for stablecoins that plan to play in the big leagues, the systemic scale ones.
So, if your stablecoin thinks it’s a big shot, better watch out.
Real money, real reserves, real accountability
Also, the FCA wants to make sure stablecoins actually stay stable. No more smoke and mirrors.
They’re proposing that issuers must let holders redeem their coins at face value, no matter what the backing assets are doing.
Plus, they want independent third parties holding those reserves, like a trusted consigliere watching the books.
Redemption requests? They gotta be honored by the end of the next business day. That’s accountability, baby.
On the crypto custody front, the FCA is cracking down hard. Firms holding your digital assets?
They’ll have to keep them locked up tight and accessible whenever you want. No excuses.
The FCA’s aiming to reduce the risk of firms folding and leaving customers out in the cold. It’s like making sure your capo’s vault never gets robbed.
The last chance
And don’t forget, UK Chancellor Rachel Reeves has already spilled the beans about a comprehensive regulatory regime to make the UK a crypto powerhouse. This consultation? Just the opening act.
So, if you’re in the crypto game, now’s your chance to shout your piece.
The FCA wants to hear from you before these rules become law. Speak up, or get ready to play by the new rules, no exceptions.
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