FCA consults on Stablecoin and Cryptoasset custody rules to bolster AML defences through EDD, asset safeguarding, and Travel Rule compliance – feedback due 31 July 2025; final rules set for 2026

Stablecoins must be fully backed by low-risk, liquid assets, with issuers subject to rigorous liquidity ratio calculations (BACR) and prompt FCA notification in case of breaches. Redemption must occur at par value within one business day, and custodians must maintain robust safeguarding measures, including third-party due diligence, daily reconciliations, and detailed record-keeping. Cryptoassets must be held in non-statutory trusts, segregated from firm holdings, with clear disclosure, transparent outsourcing accountability, and enhanced client protection to minimise risk of failure and financial crime exposure…