UK Stablecoin Regulation
UK’s Financial Conduct Authority framework requiring authorization for stablecoin issuance, with 100% backing by high-quality liquid assets.
What is UK Stablecoin Regulation?
The UK’s stablecoin regulation, advanced through FCA Consultation Paper CP25/14 in May 2025, mandates prior authorization for issuing stablecoins, treating them as money-like instruments backed fully by real-world assets like cash or equivalents. Draft legislation in April 2025 under the Financial Services and Markets Act introduces new activities for crypto custody and stablecoin issuance, with final rules expected by end-2026. This aligns with the GENIUS Act’s cross-border implications, requiring UK issuers to comply with redemption rights and reserve transparency for consumer protection.
Related Terms
Transfer Bitcoin and Transaction
A Bitcoin transaction is a digitally signed transfer of digital assets (BTC) between addresses on the bitcoin blockchain.
Open Market Operations (OMO)
The Federal Reserve's buying and selling of government securities in the open market to adjust the supply of reserves and influence interest rates.
mNAV
Multiple of Net Asset Value - a valuation metric for digital asset treasury companies, representing the ratio of enterprise value to digital asset holdings value.
Liquidity Pool (DEX)
A liquidity pool is a smart contract on a decentralized exchange (DEX) that holds a pair of tokens, enabling automated trading and liquidity provision without traditional order books.
Ethereum Node
A software client that participates in Ethereum’s Proof-of-Stake network to validate, store, or relay blockchain data.
Liquidation (Perp Dex)
The forced closure of a leveraged position when margin falls below the required level.