UK unveils unified payment rules for digital assets

The UK Treasury is unifying payment rules for traditional services, stablecoins, and tokenized deposits to modernize the sector and streamline oversight.

The UK Treasury has unveiled a sweeping overhaul of payment regulations, introducing a unified framework that covers traditional payment services, stablecoins, and tokenized deposits. Announced during London Fintech Week, this initiative aims to modernize the UK’s payments regime and foster digital finance innovation. Key measures include a new issuance regime for stablecoins, reduced administrative requirements for firms offering stablecoin payment services, and expanded Financial Conduct Authority (FCA) oversight of Open Banking and AI-driven payment activities. Chris Woolard has been appointed as Wholesale Digital Markets Champion to lead the development of tokenized wholesale financial systems. Additionally, the government will allocate £1 million to support fintech innovation and plans to merge the Payment Systems Regulator into the FCA to streamline regulatory processes. These reforms are designed to align the UK’s payments framework with advancements in tokenization and blockchain, positioning the country as a leader in digital markets.