HMT has published its response to its January 2021 consultation and call for evidence on the UK regulatory approach to cryptoassets and stablecoins. The consultation response confirms the government’s intention to bring activities that issue or facilitate the use of stablecoins used as a means of payment into the UK regulatory perimeter, primarily by amending existing e-money and payments legislation. The government also intends to support industry in ensuring that regulations can accommodate tokenisation and DLT in financial market infrastructures (FMIs), and is developing an FMI Sandbox which will be up and running in 2023. A further consultation on regulating a wider set of cryptoasset activities is planned for later in 2022, so it looks like it’s full steam ahead on plans to fully integrate crypto into the UK financial services regulatory framework.

'....[W]e want this country to be a global hub - the very best place in the world to start and scale crypto-companies.'

(John Glen MP, Economic Secretary to the Treasury, at the Innovate Finance Global Summit 2022)

Stablecoins used as a means of payment will be brought within the UK regulatory perimeter   

    
Government support to industry in ensuring that regulations can accommodate tokenisation and DLT in FMIs

   
Regulatory flexibility to be built in

   
Further consultation on other cryptoasset activities planned   

Next steps