According to the latest research, 12% of UK adults now own cryptoassets, up from 10% in previous findings. Awareness of cryptoassets also rose from 91% to 93%, while the average value of cryptoassets held by people increased from £1,595 to £1,842. 

The FCA also published:

• An indicative roadmap of key dates for the development and introduction of the UK’s crypto regime. This roadmap outlines planned FCA policy publications for cryptoassets where it is seeking feedback and the content they are expected to cover. 
• A blog by Matthew Long, director of payments and digital assets: 'Developing our approach to crypto regulation'.

The Legal aspects of retail CBDCs paper examines some key legal questions that may need to be addressed by any jurisdiction considering issuing a retail CBDC but does not attempt to provide definitive answers to those questions. It focuses on four areas: the legal classification of retail CBDC; the obligations and liabilities of participants in the retail CBDC ecosystem; privacy and financial crime; and cross-border issues. 

The CBDCs: System design paper provides some perspectives on overall system design and then focuses on four key issues for designing a well-functioning retail CBDC system: privacy, cybersecurity (including quantum computing), offline functionality; and point of sale considerations.

The Secretary outlined initiatives the UK government is taking forward in the digital asset ecosystem, for example the Digital Securities Sandbox and the government’s wider cryptoasset strategy.

In her speech, Mills talks about how recent innovations in digital assets and payments pose both opportunities and risks to the Bank in meeting its monetary and financial stability objectives. She highlights the Bank’s recent work on innovation, including its Discussion Paper on its approach to innovation in money and payments, the launch of our Digital Securities Sandbox, and experiments on wholesale payments.

Under the proposals, the existing e-money safeguarding regime will be replaced with a client assets (CASS) style regime designed to work with payments firms’ business models. It will also publish strengthened interim safeguarding rules for firms by the middle of next year.

The FCA’s cost benefit analysis (CBA) of its proposals has also been subject to review by the new independent CBA Panel.

Commenting on the proposals, FCA Director of Payments and Digital Assets Matthew Long said: 'We’re consulting on proposals to make safeguarding rules stronger and clearer for payment and e-money firms so customers get as much of their money back as quickly as possible if the firm goes out of business.'

Firms can respond to the FCA’s consultation by 17 December 2024.