UK unveils unified payment framework as stablecoin rules advance

The UK Treasury has unveiled plans to unify payment regulations under one framework! This will cover traditional payment services, stablecoins, and tokenized deposits. The proposal was announced during Fintech Week in London as part of an effort to modernize the country’s payments system.

Stablecoins and the new scope

Under this new framework, stablecoins used for payments will be regulated through a new issuance regime. The plan also includes expanding the Financial Conduct Authority’s (FCA) remit, particularly over open banking.

Regulatory adjustments for payment activities carried out by AI agents are a real possibility. In addition, the statement mentioned reducing admin requirements for firms offering stablecoin payment services.

Lucy Rigby, Economic Secretary of the Treasury, said,

Fintech is true British success story, and we are backing the industry to maintain its competitive edge and go even further and faster in driving growth.

Funding and leadership to support rollout

This step forward includes £1 million ($1.35 million) in funding for the Centre for Finance, Innovation, and Technology to support collaboration.

The appointment of Chris Woolard CBE, a partner at EY and former interim CEO of the FCA, was also confirmed. He is set to step in as the Wholesale Digital Markets Champion.

Expressing his appreciation, Woolard noted,

UK fintech benefits from… a regulator that engages with innovation early so firms can test, learn and scale responsibly.

UK: The global fintech leader?

Rigby said the measures are part of efforts to build a payments ecosystem that is secure and capable of adapting to rapid technological change.

The government added that it sees digital assets and blockchain technologies as having the potential to reshape how consumers and businesses interact with financial services. She expects the UK to play a leading role in this transition.

Looking ahead, the statement laid out that the government has a plan for the nation to be “the world’s center of choice for financial services investment over the next ten years.”

Final Summary

UK Treasury is bringing stablecoins and tokenized deposits under one framework.
The initiative starts with £1 million funding and new leadership to help scale the UK fintech space.

Source: https://ambcrypto.com/uk-unveils-unified-payment-framework-as-stablecoin-rules-advance-details/