The Bank of England and the Financial Conduct Authority (FCA) are set to implement new regulations for the stablecoin crypto market in line with the UK government's proposal. Beginning in early 2024, the BOE will oversee systemic stablecoins backed by the British pound, while the FCA will govern the broader crypto market. The move aligns with UK Prime Minister Rishi Sunak's vision of turning the nation into a crypto hub, following similar actions by the European Union and Japan. Stablecoin issuers will require prior permission to circulate their assets, with the possibility of retaining revenue from interest and returns from the backing assets. This marks a significant step in the UK's goal of introducing clear regulations for digital assets and crypto firms. While the UK advances its regulatory framework, the US lags behind in this area.
