đ The European Markets Organization issued a warning regarding the regulation of stablecoins
đ đ đ The original deadline for responses to documents related to stablecoin legislation in the UK was February 6. But the Bank of England (BOE) has extended the deadline for comments on its article until the morning of February 12. The deadline for comments on the UK Financial Conduct Authority's (FCA) paper was also February 6, with the Association of Financial Markets Europe (AFME) submitting comments to the FCA in time.
...The articles were published on November 6 as part of a "common package" that is seen as the first step in comprehensive regulation of digital assets. Although these articles are thematically related, each article deals with the issue from different institutions with a different approach.
...The Bank of England has mainly addressed issues related to the use of sterling-backed retail-focused stablecoins in systemic payments, such as transfer functions and requirements for wallet providers. The UK Finance Authority's paper explores a wide range of applications for stablecoins and focuses on auditing and reporting, requirements, support and maintenance of financial products.
...The FCA will also regulate custody of financial products, although the BOE may impose additional requirements on things like off-blockchain transactions, anti-money laundering and customer identification for hostless wallets. Services that may be systems in themselves or provide essential services to payment systems using stablecoins or stablecoin service providers may also be subject to dual regulation in the UK.
