According to PANews, the UK Financial Conduct Authority (FCA) has unveiled regulatory proposals for stablecoin issuance and crypto asset custody. These proposals aim to foster innovation while enhancing consumer protection. The FCA mandates that stablecoins must be fully backed by highly liquid assets to ensure users can redeem them at face value. Custodians are also required to ensure the security and accessibility of customer assets. The public consultation period for these proposals will conclude on July 31, with implementation expected in 2026. However, reactions within the crypto industry are mixed.
Matthew Osborne, Ripple's Director of Policy for the UK and Europe, stated that the FCA's proposal lays the groundwork for the UK to become a global leader in the digital asset sector. Lorien Carter, an analyst at Juniper Research, believes the consumer protection measures in the proposal will boost market confidence, though the implementation timeline may pose challenges for businesses.
Bilal Khaled from D24 Fintech Group suggested offering a regulated pilot period for startups to encourage innovation. Meanwhile, Martin Dowdall of Taylor Wessing law firm warned that a lack of clear rules for technological adaptability could lead to regulatory confusion.
