UK Considers Bank-Like Regulations for Stablecoin Issuers and Custodians

UK authorities are weighing proposals to regulate stablecoin issuers and custodians under frameworks similar to those applied to banks.

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Terms & Concepts
  • Stablecoin: A type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as the US dollar or gold.
  • Custodian: An entity responsible for safeguarding assets on behalf of clients, including digital assets like cryptocurrencies.
  • Bank-Like Regulation: Regulatory framework applied to financial institutions, involving capital requirements, risk management, and compliance oversight.