The UK government has taken steps to support the growth of stablecoin payments by consulting on draft regulations that would exempt them from certain crypto regime requirements.
According to the proposed amendments, firms providing payments services using qualifying stablecoins (UKQS) would be exempt from needing authorizations for dealing and arranging under the new cryptoasset regulatory regime. This change is expected to benefit the development of stablecoin-based payment services in the UK.
The government also plans to consult on bringing payment services using UK-issued qualifying stablecoins into regulated payments as part of its wider payments services reforms. The draft Financial Services and Markets Act 2000 (Cryptoassets) (Amendment) Regulations 2026 would carve out UKQS from certain activities under the Crypto Regulations, but firms would still need to obtain permissions for cryptoasset safeguarding in some cases.