UK FCA requests public comments on stablecoin, crypto custody regulation
The United Kingdom’s Financial Conduct Authority (FCA) has requested public feedback on proposed regulations for stablecoins and cryptocurrency custody.
In a May 28 request for comment, the United Kingdom’s financial regulator announced that its regulatory proposals are “the latest milestone on the road to crypto regulation.” The draft rules are based on prior roundtables and industry feedback. David Geale, executive director of payments and digital finance at the FCA, said the agency aims to support innovation while ensuring market trust:
“At the FCA, we have long supported innovation that benefits consumers and markets. At present, crypto is largely unregulated in the UK. We want to strike a balance in support of a sector that enables innovation and is underpinned by market integrity and trust.”
The FCA also noted it will work with the UK’s central bank to regulate stablecoins. Bank of England Deputy Governor Sarah Breeden said, “For those stablecoins that expect to operate at systemic scale, the Bank of England will publish a complementary consultation paper later this year.”
Related: UK outpaces global crypto ownership growth in 2025: Gemini report
Ensuring stablecoins remain stable
The FCA said that its rules “aim to ensure regulated stablecoins maintain their value.” The regulator said customers must be clearly informed about how the backing assets are managed. It also recommended that stablecoin issuers appoint independent third-party custodians to hold reserve assets:
“We propose to require issuers to provide holders with the right to redeem qualifying stablecoins at par value with the reference currency, irrespective of the value of the backing assets portfolio, with a payment order placed to an account in the name of the holder at the latest by the end of the business day following receipt of a valid request.“
Breeden added that the FCA’s proposals are part of a broader effort to build the UK’s stablecoin regime.
Related: UK to require crypto firms to report every customer transaction
Crypto custody rules incoming
The FCA’s proposals also introduce new requirements for firms providing crypto custody services, as outlined in a separate discussion paper. The rules are designed to ensure that user assets are secure and can be accessed at any time:
“The FCA’s proposals would require firms providing crypto custody services, who have responsibility for keeping consumers’ crypto safe, to ensure they are effectively secured and can be easily accessed at any time.“
Proposed measures also aim to reduce both the likelihood and impact of crypto firms failing, both in the crypto custody and stablecoin sectors. The ongoing efforts also follow the recent revelation by UK Chancellor of the Exchequer Rachel Reeves of plans for a “comprehensive regulatory regime” aimed at making the country a crypto leader.
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The news comes at a time when many banks are considering issuing their own private stablecoins.
Backed by lawmakers from both parties, the bill proposes rules to govern digital assets and define agency roles in enforcement and oversight.
Politics
Tube fare dodgers and Robert Jenrick clash at Stratford station – as he chases them at barriers for social media video
Robert Jenrick has taken the law into his own hands by challenging Tube fare dodgers in a social media video criticising London mayor Sadiq Khan.
The Conservative shadow justice secretary posted a video of himself challenging people walking through the barriers without paying at Stratford station in Newham, east London.
Newham is the third most deprived local authority area in the capital, according to the latest census data.
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However, Mr Jenrick said one in 25 people using London’s public transport are not paying for it, and accused Mr Khan of “driving a proud city into the ground”.
“Lawbreaking is out of control. He’s not acting. So, I did,” Mr Jenrick said in the caption.
Mr Jenrick could be seen approaching people slipping through the barriers and asking them if they think “it is alright not to pay”.
He was met with indignation, with one man telling him to “f*** off” and another saying: “I’m warning you now, move!”
Mr Jenrick asked one man if he said he was carrying a knife.
Mr Jenrick said Sadiq Khan is failing to clamp down on fare dodgers. Pic: PA
The Conservative MP said there were eight enforcement officers nearby but people were going through an open barrier without paying.
At one point, he could be seen bringing one of the fare dodgers to a group of British Transport Police officers who took the man aside for questioning.
Mr Jenrick said it is “the same with bike theft, phone theft, tool theft, shoplifting, drugs in town centres, weird Turkish barber shops”.
“It’s all chipping away at society,” he said.
“The state needs to reassert itself and go after lawbreakers.”
Another Jenrick video to boost his profile
This is the latest video from Robert Jenrick that’s trying to tap into the well-documented frustrations many have in the country that low-level crime is eroding away at civil society.
Being tough on crime is not an unusual stance for any politician to adopt, but what’s a bit different about this approach is the shadow justice secretary is packaging up the message in a slick and provocative format that’s explicitly designed for social media.
It has the effect of appealing to supporters whilst also enraging critics, giving the end result of boosting its prominence online and boosting the profile of this ambitious frontbencher too.
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A British Transport Police spokesman said: “Ticket fraud is not a victimless crime – the cost is passed down to the honest fare-paying members of the travelling public.
“We are committed to working closely alongside the railway industry to tackle fare evasion and regularly support them with high visibility patrols at known hotspot locations.”
Fare evasion costs Transport for London (TfL) £130m a year, with YouGov finding 79% of passengers saying they have personally seen fare dodging.
In April, the mayor announced a new fare evasion strategy involving expanding TfL’s team of more than 500 uniformed officers already deployed across the network to deal with fare evasion and other anti-social behaviour.
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