United Kingdom: Published response to the consultation on UK regulatory approach to cryptoassets and stablecoins

On 4 April 2022, the UK government published its response to the consultation on the regulatory approach to cryptoassets and stablecoins, which was held between 7 January 2021 and 21 March 2021. The response proposes to bring certain types of stablecoin and cryptoassets into the scope of regulation, by reforming the Electronic Money Regulations. Moreover, the UK Government plans to extend the payment system legislation to allow the Bank of England and the Payment System Regulator to supervise certain stablecoin payment systems. Finally, the document mentions the role of the Financial market infrastructure sandbox to understand how to regulate tokenisation and Distributed Ledger Technologies.