The United Kingdom accelerates the pace of the new regulatory regime of cryptography. The Financial Conduct Authority (FCA) published three articles in rapid succession in May 2025: a discussion on key policy positions (DP25 / 1) and two consultations on detailed rules (CP25 / 14 And CP25 / 15). This blog focuses on CP25 / 14. Please consult our next separate blogs on other proposals.
CP25 / 14 defines the rules proposed to, among other things, the issuance of stablescoins. Like other activities regulated by Crypto, the issuance of stablecoins will require prior authorization from the FCA. Although the design, creation, creation and / or stubborn stabbing is not a regulated activity, the FCA nevertheless intends to impose requirements on issuers in these respects. For example, transmitters must identify and manage the risks associated with the design / build of its stablecoins.
Naturally, most attention is paid to “support assets” used to maintain the stable value of a stablecoin, such as assets can be used as support assets and what the composition of the pool of support assets must be. By default, an issuer is not authorized to keep what are called “basic support assets” (essentially, short -term cash deposits and government debts with a deadline of one year or less). If a transmitter wishes to contain other support assets, which are called “enlarged support active ingredients”, they must be in a list of authorized categories (such as government debts in the longer term, certain monetary market funds and buyout agreements) and the transmitter must obtain the approval of the FCA in advance. Emitters must also ensure that at least 5% of support assets are bank deposits. The issuers authorized to have extended support assets will also be subject to additional requirements on the composition of their pool of support assets.
Support assets must also be separated from the active ingredients of the transmitter and detained in a statutory trust for the benefit of all parts holders. If the transmitter emits more than one stablecoin, each stablecoin must have its own pool of separate support assets. In addition, the goalkeeper holding support assets must be independent of the transmitter or his group.
The other proposed requirements include the AT-PAR redemption and various disclosure.
It should be noted that “stablecoin” for these purposes means a stablecoin referring to a single fiduciary currency. In addition, “emitting” includes “the offer”, “the company to be redeemed” or “continue” the relevant stabilization mechanism, or “organize” another to carry out these activities (these definitions are stated in separate legislation and yet to be finalized). In other words, the impact of these requirements can potentially be much wider than what is generally understood on the cryptography market as a stablecoin issuer. For example, an crypto exchange can be considered as a “transmitter” for the organization to offer stablecoin, or a company administering the stabilization agreements can also be a “transmitter” to continue the activities related to stablization. The consultation is open to comments until July 31, 2025.
