FCA outlines a sharper approach to regulating cryptoassets and stablecoins, emphasising that innovation must be backed by strong consumer protection, FC controls, and robust governance

The FCA states that it intends to bring cryptoasset businesses — including stablecoin issuers — within a “proportionate, sustainable” regulatory regime that applies core standards (governance, disclosure, consumer safeguards) similar to those for traditional financial firms. It also launches a stablecoin-specific cohort within its Regulatory Sandbox to allow firms to test innovations under supervision, signalling that firms should begin preparing now for authorisation under the upcoming UK crypto regime…