The UK Treasury outlines plans to ease stablecoin payment firms’ regulatory requirements as part of a wider overhaul of the country’s payments infrastructure, signalling greater integration of digital assets.
HM Treasury is moving to ease the path for stablecoin payments firms as it prepares a broader overhaul of the UK’s payments rules, signalling that digital assets are likely to play a larger role in the country’s financial infrastructure.
A draft statutory instrument published by the Treasury would remove UK-issued qualifying stablecoins from several new cryptoasset dealing and arranging requirements that are due to take effect when the wider crypto regime comes into force on 25 October 2027. The intention is to prevent firms using stablecoins for payments from having to secure cryptoasset permissions that ministers view as unnecessary for that specific business model.
The proposal is part of a wider effort to adapt the regulatory perimeter to emerging payment technologies. The government has said it plans to consult shortly on bringing payment services using UK-issued qualifying stablecoins within regulated payments rules, as part of a broader package of reforms first outlined in April. That consultation is expected in the second quarter, suggesting publication before the end of June.
Under the draft amendments, firms making use of UK qualifying stablecoins would still need cryptoasset safeguarding permissions where they hold assets on behalf of others, or arrange for another party to do so. HM Treasury also wants to clarify that an existing temporary settlement exemption does not apply where stablecoins are being held in the course of providing payment services.
The Treasury is, however, proposing to leave lending and borrowing activity involving UK stablecoins inside the cryptoasset dealing perimeter so that the Financial Conduct Authority can impose consumer protections if needed. Officials have acknowledged that this could complicate the use of stablecoins in collateral arrangements and have said they want industry feedback on the best way to address that point before the rules are finalised.
The draft instrument would also narrow the scope of the financial promotions regime so that transactions involving UK qualifying stablecoins, and no other cryptoassets, fall outside it, except where lending or borrowing is involved. At the same time, the activity of issuing a qualifying stablecoin would be brought into the financial promotions order.
The Treasury has also used the amendments to tackle two other issues raised by market participants. One would allow UK firms to carry out market-making activity without needing separate dealing authorisation, which ministers say would help create a more even competitive footing with overseas firms. Another would extend an exemption for central securities depositories and their nominee companies to cover safeguarding of specified investment cryptoassets, a change aimed at supporting tokenised securities markets.
Although the consultation on the draft instrument closed on 22 May, the final version has yet to be published. For payments firms, the next stage is the promised consultation on wider payments reform, which is expected to set out how stablecoin payments will fit into the UK’s future regulatory framework.
- https://www.jdsupra.com/legalnews/stablecoins-for-payments-uk-government-5739198/ – Please view link – unable to able to access data
- https://www.gov.uk/government/publications/policy-note-draft-statutory-instrument-amending-the-cryptoasset-regulations – HM Treasury has published a policy note detailing proposed amendments to the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026. These amendments aim to exempt stablecoin payment firms from the requirement to obtain authorisations for cryptoasset dealing and arranging under the new cryptoasset regulatory regime, effective from October 2027. The policy note outlines the government’s intent to facilitate the use of UK-issued qualifying stablecoins in payment services and addresses potential barriers to their adoption.
- https://www.gov.uk/government/publications/policy-note-draft-statutory-instrument-amending-the-cryptoasset-regulations/draft-statutory-instrument-amending-the-financial-services-and-markets-act-2000-cryptoassets-regulations-2026-policy-note – The draft statutory instrument amending the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 proposes carving out UK qualifying stablecoins from certain regulated activities, such as dealing in qualifying cryptoassets as principal or agent. This move aims to streamline the regulatory process for firms providing stablecoin payment services. However, firms will still need to obtain permissions for cryptoasset safeguarding under the crypto regime when safeguarding cryptoassets on behalf of others.
- https://www.gov.uk/government/publications/regulatory-regime-for-cryptoassets-regulated-activities-draft-si-and-policy-note – HM Treasury has laid before Parliament a draft statutory instrument and policy note to create new regulated activities for cryptoassets. The proposed legislation introduces designated activity regimes for public offers of qualifying cryptoassets and admissions to trading on qualifying cryptoasset trading platforms. It also amends the Regulated Activities Order to specify certain activities related to cryptoassets as regulated activities under the Financial Services and Markets Act 2000.
- https://www.gov.uk/government/publications/financial-services-and-markets-act-2000-cryptoassets-regulations-2026 – The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 establish a regulatory framework for specified cryptoasset activities under the Financial Services and Markets Act 2000. The regulations define types of cryptoassets, including qualifying cryptoassets and specified investment cryptoassets, and set out which activities related to these cryptoassets are regulated. The full commencement date for these regulations is 25 October 2027.
- https://www.gov.uk/government/publications/financial-services-and-markets-act-2000-cryptoassets-regulations-2026/financial-services-and-markets-act-2000-cryptoassets-regulations-2026 – The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, made on 4 February 2026, create a new regulatory regime for specified cryptoasset activities under the Financial Services and Markets Act 2000. The regulations amend the Regulated Activities Order to define the types of cryptoassets that will be regulated and introduce new designated activities related to offering qualifying cryptoassets to the public and admitting them to trading on regulated platforms.
- https://www.gov.uk/government/publications/financial-services-and-markets-act-2000-cryptoassets-regulations-2026/financial-services-and-markets-act-2000-cryptoassets-regulations-2026-1 – The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102) have been published. They create a new regulatory regime for specified cryptoasset activities under the Financial Services and Markets Act 2000 (FSMA). The Regulations were made on 4 February 2026 and come into force on 25 October 2027, which is when the new regime starts.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references a draft statutory instrument published by HM Treasury on 21 April 2026, which is recent. However, the article was published on 2 June 2026, indicating a delay of over a month in reporting. This delay slightly reduces the freshness score.
Quotes check
Score:
7
Notes:
The article includes direct quotes from the draft statutory instrument and policy note. While these are direct citations, the absence of external verification or attribution to independent sources raises concerns about the originality and verification of the quotes.
Source reliability
Score:
6
Notes:
The article is published on JD Supra, a platform that aggregates legal and regulatory content. While JD Supra provides access to primary sources, it often republishes content from other sources, which may affect the originality and independence of the information presented.
Plausibility check
Score:
8
Notes:
The claims about HM Treasury’s draft statutory instrument and policy note align with information available from official UK government publications. However, the lack of independent verification or additional reporting from other reputable sources introduces some uncertainty.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information about HM Treasury’s draft statutory instrument and policy note regarding stablecoin payments. However, the reliance on JD Supra’s aggregation without independent verification, the delay in reporting, and the content’s classification as an opinion piece raise significant concerns about the accuracy and reliability of the information presented. These issues lead to a ‘FAIL’ verdict with medium confidence.