The Bank of England and the Financial Conduct Authority have published a joint approach detailing how they will coordinate the regulation of systemic stablecoin issuers in the UK.
The framework clarifies the division of responsibilities between the two bodies and outlines how other relevant authorities will be engaged where necessary.
This development marks a significant step in the UK’s effort to integrate digital assets into the traditional financial system under strict prudential standards.
By defining a clear supervisory model for systemic issuers, regulators aim to mitigate risks to financial stability while providing certainty for market participants operating at scale.
The move builds on the FCA’s earlier introduction of comprehensive regulatory requirements for firms facilitating the purchase, trading, and holding of cryptocurrencies.
Those rules mandated strict financial resilience standards, signaling a broader shift toward treating crypto-asset activities with the same rigor as traditional financial services.