UK's finance ministry opens consultation on regulating crypto and stablecoins

Quick Take

  • HM Treasury, the U.K.’s finance ministry, has opened a consultation on regulating crypto-assets and stablecoins.
  • The Treasury wants to regulate the crypto space like traditional payment services.
  • The consultation is open until March 21.

Her Majesty's (HM) Treasury, the U.K.'s finance ministry, has opened a consultation on regulating crypto-assets and stablecoins to support innovation and protect consumers.

The Treasury said the rise of crypto and stablecoins could pose similar financial stability and consumer risks as traditional regulated payment systems, and hence regulating the space is necessary.

"We will take an agile, risk-led approach to regulation, rooted in the principle of 'same risk, same regulatory outcome,'" said John Glen, an MP and Economic Secretary to the Treasury. In other words, the government wants to ensure a level playing field and reduce opportunities for regulatory arbitrage.

It also wants to ensure that the regulatory approach focuses on risks and opportunities that are "most urgent or acute," and reflects international discussions given the cross-border nature of crypto and