The Bank of England has released a new discussion paper outlining what a potential regulatory framework would look like should pound-based stablecoins become widely used in the UK. This paper raises key concerns about the use of “unhosted” crypto wallets and their potential for facilitating money laundering and terrorist financing. The paper also acknowledges that the money laundering and terrorist financing risks of these wallets are already covered under the recommendations set out by the International Financial Asset Task Force. The Bank of England is now engaging in a consultation process regarding its final proposed regulatory framework. Additionally, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have also released papers discussing their regulatory approach to stablecoins. These coordinated publications seek to offer clarity concerning the specific regulatory category to which each form of money and money-like instrument belongs. #Stablecoins #BankofEngland #Regulations #Cryptocurrency #MoneyLaunderingPrevention
You can read more about this topic here: Decrypt: Self-Custodial Wallets Could Challenge Stablecoin Issuers’ Ability to Satisfy Regulations: BoE
