UK’s HM Treasury has published a new stablecoin draft.
As part of a wider regulatory reform to make digital payments more effective, the UK government is opting to remove unnecessary hurdles for stablecoin adoption.
Specifically, it hopes to ensure that companies wishing to use and benefit from stablecoin transfers on a regular basis do not have to seek additional crypto asset dealing and arranging licenses.
In order to provide clarity, and deliver against the intended policy, the government is proposing to clarify in the SI that this exclusion applies only where the activity is ancillary to dealing or arranging, and therefore does not apply to holding UKQS in the course of providing payments services.
This means that UK based stablecoin issuers still have to follow guidance on minimum reserves and appropriate licensing as an issuer, but it creates a breathing room for entities wishing to make use of fast and cheap stablecoin payments.
Recently, the FCA had announced their latest round of consultations involving industry participants in preparation for newer stablecoin and crypto asset licensing regime later this year.
Also, MP (Member of Parliament) Lucy Rigby is also expected to make several comments during London Fintech Week about the incoming changes. This indeed builds on the current momentum in the UK for developing a more comprehensive framework for local businesses and individuals.
To some, it suggests that the UK, and the EU for that matter, are beginning to outpace the U.S.
Robin Nordnes, CEO & Founder of Solana-based infrastructure firm Raiku, told Stablecoin News that the GENIUS Act, a sweeping stablecoin law, is still experiencing friction despite being signed in for three months.
The demand isn’t theoretical, we’ve seen over $1 trillion of economic activity moved across Solana in Q1 alone, and that’s only growing.”
He noted that the UK and EU are moving on with t heir own frameworks whilst the U.S. falls behind. Speaking with CN, he noted:
Every week the US spends arguing about comment-period sequencing is a week institutional volume focuses around someone else’s jurisdiction.”
“We know the tech works”, he adds, but now the question is if the U.S. wants to play host, “or watch it settle elsewhere.”
