UK Treasury drafts stablecoin payment regulations with specific exclusions

HM Treasury has released a draft of the Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026. The proposal aims to narrow the regulatory perimeter for UK-qualifying stablecoin payments by excluding certain transfers from dealer rules. The relief does not apply to overseas-issued tokens or coins merely tracking sterling. Transactions involving financing, crypto trading, or swapping for other assets remain regulated, though new exceptions exist for specific wholesale-style collateral and repo arrangements.