Bank of England to Regulate Stablecoins that Pose Financial System Risk

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The Bank of England plans to regulate stablecoins that could pose a risk to the financial system.

The Financial Conduct Authority will be responsible for regulating stablecoin providers in the crypto sector.

Legislation for fiat-backed stablecoins will be introduced in the UK early next year.

The Bank of England has announced that it plans to regulate stablecoins that could potentially pose a risk to the financial system. In a discussion paper published today by FCA, the bank disclosed that it will oversee systemic stablecoins and their issuers, with the Financial Conduct Authority responsible for regulating stablecoin providers in the crypto sector. The U.K. government describes its aim to introduce legislation for fiat-backed stablecoins early next year.