Global Stablecoin Regulation
As of September 2025, the UK is consulting on a new regime for “qualifying stablecoins.” Retail use is not prohibited, but issuing UK-labelled qualifying stablecoins and safeguarding their backing assets will require FCA authorisation once the regime goes live. Near-final HMT draft legislation (Apr 2025) and FCA consultations (May–Jul 2025) indicate final rules in 2026.
Legal Status
Legal with restrictions
Regularity Clarity
4/5
Regime Status
Finalized Pending Start
Allowed Types
Fiat Referenced
Classification
Crypto Asset
Regulated cryptoasset activities under FSMA (via amended RAO) for issuing qualifying stablecoins and safeguarding qualifying cryptoassets; not e-money or a security by default—bespoke activity with specific rules.
Regulatory Authorities
Top Issuers
Consumer Protection
Reserve Requirements
Full 1:1 backing in eligible assets with composition controls; statutory trust over backing assets; independent third-party custody.
Auditing
Daily reconciliations; topping-up/burning to maintain parity; prudential standards under CP25/15.
Redemption Rights
Par redemption available to all holders with payment order placed by end of next business day (T+1); no minimum redemption; no interest pass-through.
