On May 28, 2025, the UK FCA released a consultation paper seeking industry input regarding stablecoin regulations to enhance market safety and alignment with international standards.
The proposed framework includes obligations for stablecoin issuance and custodian asset safety, shifting market dynamics, particularly in decentralized finance and crypto trading platforms.
The UK’s regulatory efforts may redefine operational models for crypto platforms globally, balancing investor protection with innovation, while raising concerns about the impact on technology and market access.
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