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UK plans payments rule changes for stablecoins, tokenized deposits
TL;DR
The UK is updating its payments regulations to facilitate the use of stablecoins and tokenized deposits. HM Treasury announced plans for a single framework for traditional and digital payment services.
Key points
- UK revising payments rulebook for fintech adoption
- Consultation on reforms for payment services announced
- Single framework for traditional and tokenized payments planned
- Legislation to ease stablecoin service offerings proposed
- Chris Woolard appointed as digital markets champion
Mentioned in this story
HM TreasuryLucy RigbyChris Woolard
The United Kingdom is revisiting its payments rulebook to support the adoption of new fintech and payment technologies such as stablecoins and tokenization.
In a Tuesday announcement, HM Treasury and Economic Secretary to the Treasury Lucy Rigby said the government will consult on reforms for payment services and electronic money rules.
The Treasury said the changes are meant to create a single framework for traditional and tokenized payments, including stablecoins and tokenized deposits. It also said it plans to bring forward legislation to reduce administrative burdens for companies seeking to offer stablecoin payment services.
The Treasury also named former Financial Conduct Authority veteran Chris Woolard as digital markets champion for its Wholesale Financial Markets Digital Strategy, where he will support efforts to drive adoption of tokenized digital assets.
Woolard highlighted the growing role of digitization in financial markets, emphasizing that collaboration and a dialogue between the private and public sectors will best support the UK’s global competitiveness as a leader in digital markets.
The package comes as the UK continues to develop its broader crypto regulatory framework, with legislation expected to take effect in 2027.
A package of comprehensive measures targeting digital markets
The new package was unveiled during UK Fintech Week in London, a series of industry events supported by organizations such as Innovate Finance, the independent industry body for the UK fintech sector.
A key part of the plan is bringing stablecoins and tokenization more deeply into the payments system, including through regulatory reform as a core measure.
Source: Lucy Rigby
“This will mean establishing a single, coherent framework for both traditional and tokenised payments, including both stablecoins and tokenised deposits,” the announcement said.
Q&A
What changes is the UK government making to payment regulations for stablecoins?
The UK government is consulting on reforms to create a unified framework for traditional and tokenized payment services, including stablecoins.
Who is the digital markets champion for the UK's Wholesale Financial Markets Digital Strategy?
Chris Woolard, a former Financial Conduct Authority veteran, has been appointed as the digital markets champion.
How will the UK's new payment rules impact companies offering stablecoin services?
The new rules aim to reduce administrative burdens for companies seeking to provide stablecoin payment services.
