🔊 Hot off the press!
🇬🇧 We have submitted our comprehensive response to the Financial Conduct Authority's Consultation Paper ‘CP25/14: STABLECOIN Issuance and Cryptoasset Custody’.
🌐 Grounded in #industry research, #member surveys, and #scientific data, our evidence-driven submission addresses key #regulatory challenges and presents strategic recommendations to help shape a world-leading framework for Stablecoin and crypto custody that protects consumers, drives #innovation, and cements the #UK’s leadership in Digital Assets.
🔎 Key highlights from our response:
📍 Auditing Standards for Stablecoins: FCA-approved training for auditors reviewing tokenomics disclosures.
📍 Clarity and definitions of key terms (e.g. “unconnected custodians”, “material discrepancy”).
📍 Standards for Multi-Currency Stablecoins: Support for aligned standards with single-currency issuers, with targeted deviations for forex risks, including hedging and stress-testing.
📍 The use of omnibus wallets and DLT-based reconciliations, with appropriate guidance.
📍 Consumer Protection Beyond Duty: Consumer Duty alone is insufficient; additional requirements like statutory trusts and backing asset safeguards are essential to mitigate risks such as redemption failures and volatility.
📍 Backing Assets & Liquidity: Endorsement of high-quality asset compositions, dynamic redemption risk management alternatives (e.g., algorithmic buffers), and phased implementation for smaller issuers.
📍 Custody Safeguards: Emphasis on segregation, robust key management, record-keeping, and proportional rules to balance security with market access for smaller custodians.
📍 Cost-Benefit Analysis Views: While benefits like reduced losses are noted, we recommend sensitivity analysis, subsidies for compliance, and ongoing monitoring to avoid barriers for new entrants.
📍 Recommends allowance for operational exemptions (e.g. de minimis issuer-held coins).
🤝 We extend our sincere thanks to BBA members, editors, advisors, and partners for their invaluable insights and contributions to this consultation response.
➡️ Read the full submission here:
https://britishblockchainassociation.org/wp-content/uploads/2025/07/Stablecoins-FCA-BBA-Response.pdf
🏛️ Established in 2017, The BBA works in close collaboration with regulators, policymakers, academics, industry leaders, and members of the public to advance evidence-led adoption of #Blockchain and #Cryptoasset technologies. We are also the Secretariat of the APPG on Blockchain Technologies.
➡️ Interested in contributing to our work or becoming a member?
📩 Contact us: info@britishblockchainassociation.org
#Crypto #Regulation #Blockchain #DeFi #Stablecoins #Innovation #FCA #FinTech #DigitalAssets #UKPolicy #BBA #EvidenceBasedBlockchain
Nguyen Huy, the head of technology at the NDA, said that the blockchain will be a protective layer for the nation’s live data. He said it will be “critical” to their digital society and economy.
The announcement also said the blockchain will offer a “decentralized layer of trust” for national systems, including e-government, finance, healthcare, logistics and education.
➡️ More info here:
Vietnam Launches a National Blockchain Platform
#National #Blockchain #Roadmap
