The Crypto Council for Innovation, an advocacy group for the digital asset sector, is welcoming the two consultations launched by the UK Financial Conduct Authority addressing the clarity of regulation for the digital asset industry, including the key stablecoin industry.
The consultations cover the issuance and custody of crypto and what will be required of the firms that aim to gain authorisation to operate in the sector.
Laura Navaratnam, UK Policy Lead at the Crypto Council for Innovation, believes these consultations could reshape the landscape for crypto in the UK.
“This is a foundational moment for the UK’s crypto regulatory framework,” says Navaratnam. “It is comprehensive, detailed, and clearly aimed at setting a global benchmark for responsible innovation.”
Navaratnam describes the process as pouring concrete to establish a sturdy digital asset economy. She says the framing is serious and points to a commitment to build trust in the crypto marketplace.
“This is a far cry from regulatory ambiguity,” states Navaratnam. “The proposals mirror many elements from traditional finance (e.g., statutory trusts, capital buffers), reflecting the UK’s intent to integrate crypto into its broader financial ecosystem with safeguards front and center.”
She notes that for stablecoins and custody, the requirements include asset backing of 1:1 held in trust. Redemptions must be at par within one business day, and custodians must segregate funds.
As for the prudential regime for crypto firms, liquidity requirements include a floor of £350k for stablecoin issuers, or higher as well as liquidity buffers.
Navaratnam says the consultations show a true intent for bespoke regulation specific for the crypto sector.
