HMT announces regulatory plans for stablecoins and wider cryptoassets

HM Treasury (HMT) confirmed on 4 April 2022 it will bring stablecoins, where used as a means of payment, into the UK regulatory parameter, making them a recognised form of payment. This supports the UK’s plans to become a global hub for the crypto industry.

The planned legislative changes include amending the Electronic Money Regulations 2011 and Payment Service Regulations 2017 to include stablecoins as well as extending the applicability and scope of Part 5 of the Banking Act 2009 and the Financial Services (Banking Reform) Act 2013 to include stablecoin activities.

On the investment and wholesale uses of distributed ledger technology (DLT) in financial markets, HMT will ensure that regulations can accommodate wider tokenisation and DLT in Financial Market Infrastructures (FMI).

Download this At a glance to see a detailed summary and what this means for firms.