Bank of England and FCA outline plans to regulate stablecoins into mainstream

Discussion paper

The Bank of England and the Financial Conduct Authority have set out plans to regulate stablecoins in the mainstream, allowing UK consumers and retailers to use them.

In a paper published today (6 November), the Bank of England and FCA requested feedback on their proposed approach to regulating stablecoins, aiming to protect consumers, prevent money laundering and safeguard financial stability. Unlike normal cryptocurrencies, stablecoins are pegged to a fixed amount - normally the dollar - either through backing with assets or an algorithmic process. Deciphering stablecoins: A financial stability risk? Stablecoins have increasingly attracted attention from regulators, especially due to the collapse of major algorithmic stablecoin Terra (or Terra...