CP25/14: Stablecoin issuance and cryptoasset custody

Read CP25/14 (PDF)[1]

Why we are consulting

We want to develop a safe, competitive and sustainable cryptoasset sector – one that enables innovation and is underpinned by market integrity and consumer protection.  

Qualifying stablecoins are cryptoassets that aim to maintain a stable value by referencing 1 or more fiat currencies. Stablecoins have the potential to drive efficiency in payments and settlement using blockchain technology, with particular benefits for cross-border transactions.  

Our proposed rules aim to ensure regulated stablecoins maintain their value. They also mean that customers should be provided with clear information on how the backing assets are being managed.

This is the latest milestone in our roadmap for crypto regulation[2]. The proposals are the result of extensive engagement through roundtables and feedback on previous discussion papers.

This CP is published alongside CP25/15[3], setting out our proposed prudential requirements for qualifying stablecoin issuers and cryptoasset custodians.  

We will work closely with the Bank of England on the upcoming regime to ensure a clear pathway in regulation for stablecoins.

Who this is for

Our proposals will affect consumers and firms who use, or interact with:

• Qualifying stablecoins.
• Qualifying cryptoassets.
• Traditional finance custodians.

Who needs to read this document:

• Firms that issue, or are seeking to issue, fiat-referenced stablecoins in the UK.
• Firms that wish to make use of qualifying stablecoins within wider activities (such as retail payments or on-and off-ramping).
• Cryptoasset custodians and other firms that carry out, or seek to carry out, safeguarding of qualifying cryptoassets.
• Industry groups, law firms and trade bodies representing firms in the cryptoasset sector
• Auditors providing services to cryptoasset firms.
• Professional advisers in the cryptoasset sector.
• Consumers and groups representing consumer interests.

It may also interest:

• Policymakers and other regulatory bodies.
• Academics and think tanks.
• Industry experts and commentators.
• Issuers of electronic money and payment service providers.

Next steps

In support of the opportunities stablecoins present to financial services and the broader economy, the FCA will add a specific focus on stablecoins to our innovation services in the coming months.  

We will also consult on proposed cross-cutting conduct and firm standards requirements, as set out in our crypto roadmap, which will be relevant for stablecoin issuers and cryptoasset custodians.  

Send us your comments by 31 July 2025 using the online form. We will consider this feedback before we publish our final rules.

Complete the online form[4]

If you cannot use the form, email us at [email protected].

Background

Under the government’s plans, our regulatory remit for cryptoassets will expand from the current Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and financial promotions regime to a more comprehensive crypto regime.

On 29 April 2025, the Treasury published a draft of forthcoming statutory provisions[5] to create new regulated activities for cryptoassets, and a policy note detailing the intended policy outcomes of these provisions.