UK’s FCA to Authorize Overseas Stablecoin Provider
The UK government has proposed regulations for fiat-backed stablecoins, requiring crypto companies to obtain permission from the Financial Conduct Authority (FCA) to offer services with overseas stablecoins like Tether (USDT) in the country.
The FCA will also rule the issuance and custody of fiat-backed stablecoins issued in or from the UK. The government aims to accommodate overseas fiat-backed stablecoins for goods and services, but brokers or payment providers must still be authorized by the FCA.
The legislation will be introduced by early 2024, subject to parliamentary time. In October 2023, the FCA warned crypto firms to comply with new rules on financial promotions for crypto assets and has identified over 220 breaches by firms.
The watchdog expressed disappointment with the lack of engagement from the crypto industry and received less than twenty responses to its consultation paper on the rules.
(With inputs from Shikha Singh)
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