UK Unveils Integrated Regulatory Plan for Stablecoins and Tokenized Deposits

Odaily News: During London Fintech Week, the UK Treasury announced a regulatory plan to bring stablecoins and tokenized deposits under a unified regulatory framework alongside traditional payment services.

The plan proposes regulating payment-focused stablecoins under an upcoming issuance regime. It also aims to expand the Financial Conduct Authority's (FCA) regulatory scope over open banking and explore regulatory adjustments for payment activities executed by AI agents. Furthermore, the plan suggests reducing administrative requirements for businesses offering stablecoin payment services through new legislation.

Concurrently, the UK Treasury announced the appointment of EY partner and former FCA interim CEO Chris Woolard CBE as the Wholesale Digital Markets Enabler, responsible for advancing the development of a tokenized wholesale financial system. It also pledged £1 million (approximately $1.35 million USD) in funding to the Centre for Finance, Innovation and Technology starting in April.

City Minister Lucy Rigby stated that the plan aims to build a safe, competitive payment ecosystem capable of seizing opportunities presented by technological change. The UK government expressed recognition of the transformative potential of digital assets and blockchain technology, believing it can reshape how consumers and businesses interact with financial services.