Government releases paper on regulating stablecoins and other cryptocurrency

The paper, published in January, outlines plans to regulate cryptoassets, protect consumers and regulate ‘stablecoins’ (a cryptocurrency which, like bitcoin, uses distributed ledger technology but which attempts to overcome the associated volatility either through the backing of fiat currencies or by using algorithms to control supply). The Financial Services and Markets Bill includes provision for the regulation of stablecoins.

The paper also notes that the government seeks to add references to cryptoassets to criminal and civil asset recovery powers via the Economic Crime and Corporate Transparency Bill 2022.

View the paper here.