8 January 2021

HM Treasury consults on UK regulatory approach to cryptoassets and stablecoins

The UK Treasury has issued a consultation on the regulatory approach to cryptoassets and stablecoins. It discusses the current regulatory landscape for cryptoassets, puts forward proposals for the extension of the regulatory perimeter for cryptoassets for payments purposes, as well as calling for evidence on a range of questions in relation to cryptoassets. Here, we review what the proposals entail, and why the consultation represents an important opportunity to provide clarity in this space.


On 7 January 2021, HM Treasury published the “UK regulatory approach to cryptoassets and stablecoins: Consultation and call for evidence” (the Paper).

This publication was borne out of the Chancellor’s March 2020 budget where, in response to the rapid growth of cryptoasset markets in recent years, the Chancellor committed to:

The Consultation Paper

Policy approach

Expansion of regulatory perimeter and new regime for “stable tokens”

Call for Evidence

Next steps