WatcherGuru
The UK Treasury published its final cryptoasset regulatory framework on Monday, locking in a regime that subjects crypto trading, lending, and staking to FCA authorisation while carving a distinct, lighter touch for qualified stablecoin issuers. The package caps regulated stablecoin issuance at £20 million per issuer per year unless the firm meets elevated capital and reserve tests, and slashes the proposed own-funds requirement for systemic stablecoins from the £150 million floor floated in the 2023 consultation to a £10 million minimum.
Why it matters
The move puts the UK on a clearer G7 footing alongside the EU's MiCA and the US GENIUS Act framework, with a designated supervisor (the FCA) rather than the patchwork of indirect regulators that governed the sector until now. Cutting the systemic-stablecoin capital floor by more than an order of magnitude versus the draft is the most investable signal: it tells institutional issuers the regime is built to onboard them, not just to police incumbents.
Market impact
Circle, Tether, and the bank-issued GBP stablecoin consortia have all signalled appetite for FCA-registered UK issuance; the lower capital threshold lets a mid-tier issuer underwrite the operating cost without pricing the product out of the UK payments market. Watch the FCA's first wave of authorisations and the Bank of England's systemic-stablecoin designation criteria as the next two data points that will set the tone for cross-border G7 coordination.
Frequently asked questions
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What did the UK actually announce on crypto regulation this week?
The UK Treasury published its final cryptoasset regulatory framework, pulling crypto trading, lending, and staking under FCA authorisation and setting a distinct capital regime for regulated stablecoin issuers.
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How much capital does a systemic stablecoin issuer now need in the UK?
The final framework sets a £10 million own-funds minimum for systemic stablecoin issuers, down from the £150 million floor floated in the 2023 consultation.
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What is the £20 million cap on regulated stablecoin issuance?
Regulated stablecoin issuance is capped at £20 million per issuer per year unless the firm meets elevated capital and reserve tests set by the FCA and Bank of England.
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Who supervises crypto firms under the new UK framework?
The FCA becomes the single designated supervisor for crypto trading, lending, and staking, replacing the patchwork of indirect regulators that previously governed the sector.
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How does the UK regime compare with MiCA and the US GENIUS Act?
The UK framework lands in the same G7 window as the EU's MiCA and the US GENIUS Act framework, with an explicit designated supervisor and a lower capital threshold designed to onboard institutional issuers.
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