UK Treasury Proposes Unified Payment Rules for Stablecoins and Tokenized Deposits

HM Treasury announced plans during Fintech Week in London to consolidate UK payments regulation into a unified framework covering traditional payment services, stablecoins, and tokenized deposits. Treasury and City Minister Lucy Rigby stated the measures aim to modernize the UK's payments regime and support innovation while aligning with digital finance developments. The framework includes regulating stablecoins under a forthcoming issuance regime, expanding the Financial Conduct Authority's powers over Open Banking, and exploring regulatory adjustments for AI agent payment activity. The Treasury also appointed Chris Woolard CBE as Wholesale Digital Markets Champion and committed £1 million ($1.35 million) to the Centre for Finance, Innovation and Technology starting in April, supporting the government's ten-year plan to establish the UK as the world's leading financial services center.

Unified regulatory framework for digital payments and stablecoins

• ▪The UK Treasury has set out plans to consolidate payments regulation into a single framework spanning traditional payment services, stablecoins, and tokenized deposits
• ▪The UK Treasury's unified payments framework includes plans to regulate stablecoins used in payments under a forthcoming issuance regime
• ▪The UK Treasury's unified payments framework proposes new legislation to reduce administrative requirements for firms seeking to provide stablecoin payment services
• ▪The UK Treasury's unified payments framework explores regulatory adjustments for payment activity conducted by AI agents
• ▪The UK Treasury plans to consult soon on reforming payment services and electronic money regulation
• ▪The UK Treasury's unified payments framework includes expanded regulatory powers for the FCA over Open Banking developments
• ▪The UK Treasury unveiled the payments regulation consolidation measures during Fintech Week in London
• ▪The UK Treasury's unified payments framework expands the Financial Conduct Authority's remit over Open Banking

Government initiatives to support fintech innovation and tokenization

• ▪Chris Woolard CBE is a partner at EY and former interim CEO of the FCA
• ▪Lucy Rigby announced the UK Treasury's unified payments framework measures are designed to support innovation and modernize the UK's payments regime while aligning it with changes in digital finance
• ▪The UK Treasury committed £1 million in funding for the Centre for Finance, Innovation and Technology starting in April
• ▪The UK Treasury's £1 million funding for the Centre for Finance, Innovation and Technology equals $1.35 million
• ▪The UK Treasury appointed Chris Woolard CBE as the Wholesale Digital Markets Champion to lead the development of tokenized wholesale financial systems

Industry perspectives on adoption challenges beyond regulation

• ▪Anthony Yeung stated that trust in digital assets would depend on both regulatory structure and the reliability of access and control in practical conditions
• ▪Anthony Yeung stated that regulatory design alone will not determine adoption of stablecoins and tokenization

Perspective of UK Treasury and City Minister Lucy Rigby

• ▪Lucy Rigby believes the UK Treasury's unified payments framework will support innovation in the UK payments sector
• ▪Lucy Rigby believes the UK Treasury's unified payments framework will align UK payments regulation with changes in digital finance

Perspective of CoinCover chief commercial officer Anthony Yeung

• ▪Anthony Yeung believes custody frameworks are essential for market participation in digital assets
• ▪Anthony Yeung believes trust in digital assets depends on the reliability of access and control in practical conditions
• ▪Anthony Yeung believes disaster recovery mechanisms are essential for market participation in digital assets within regulated environments