Banking & Finance
Digital settlement assets - the next stage in UK cryptoasset regulation
The Financial Services and Markets Bill introduces powers for HM Treasury (HMT) to bring stablecoins used as means of payment and similar "digital settlement assets" within scope of regulation. Most details of the new regime are left to be fleshed out by HMT, who confirmed their intention to regulate stablecoins used as a means of payment earlier in 2022 and plans to consult on its approach to regulating other types of cryptoassets later in 2022. Therefore, whilst the broad shape of the UK regulatory regime for cryptoassets is emerging, attention will turn to HMT and the regulators for further clarity on the precise scope and structure of the regime. This staged approach to UK cryptoasset regulation is in contrast to the more comprehensive approach taken in the EU under MiCA.