United Kingdom: Financial Conduct Authority closes consultation on proposed rules for issuance and custody of qualifying stablecoins and cryptoassets (CP25/14)

On 31 July 2025, the UK Financial Conduct Authority (FCA) will conclude its consultation on proposed rules and guidance for the issuance of qualifying stablecoins and the safeguarding of qualifying cryptoassets, as set out in Consultation Paper CP25/14. The proposals are made under powers introduced by the Financial Services and Markets Act 2023, which extends the FCA’s regulatory remit to include the issuance and custody of certain cryptoassets, including fiat-backed stablecoins used for payments. The consultation outlines requirements for stablecoin issuers to maintain value stability through custody of appropriate backing assets, ensure redeemability at par value, and provide clear disclosures. For cryptoasset custodians, the proposals include safeguarding obligations such as asset segregation, control arrangements, and procedures for returning client assets. The FCA intends to apply the same regulatory standards to qualifying stablecoin issuers and cryptoasset custodians as it does to other authorised firms, including compliance with the Threshold Conditions under the Financial Services and Markets Act. Additional provisions address governance, operational resilience, and wind-down planning.