Global Digital Finance (GDF) and the Crypto Council for Innovation (CCI) submitted a joint response to HM Treasury’s consultation on modernising payment services regulation, focusing on the treatment of tokenised payments, stablecoins and the interaction between the UK’s payments and cryptoasset regulatory frameworks.
CCI and GDF support the government’s ambition to modernise the regulatory framework and establish a technology-neutral approach that accommodates both traditional and tokenised forms of money. The response emphasises the importance of regulatory clarity, proportionality and avoiding overlapping requirements that could create unnecessary barriers to innovation and market participation.
The submission highlights several key priorities, including updating regulatory definitions to accommodate stablecoins, tokenised deposits and digital wallets; establishing a transparent recognition framework for overseas-issued stablecoins; and ensuring that firms can provide tokenised payment services without duplicative authorisation or safeguarding requirements. It also calls for greater international regulatory alignment to support cross-border interoperability and the development of the UK’s digital payments ecosystem.
CCI and GDF further recommend adapting existing conduct, prudential and liability requirements to reflect the characteristics of blockchain-based payments, including transaction finality, smart contracts and programmable payments. The response also addresses emerging agentic payments, calling for clear rules on delegated consent, authentication and liability, alongside greater coordination between Open Banking and tokenised payment infrastructure.
The submission stresses the importance of a clear implementation timeline and transitional arrangements, particularly as firms navigate the introduction of the UK’s broader cryptoasset regulatory regime. It recommends that HM Treasury and the Financial Conduct Authority provide greater clarity on regulatory boundaries, permissions and supervisory expectations to support effective implementation.
Overall, the response calls for a modern, coherent and proportionate payments framework that maintains strong consumer protections while supporting innovation, competition and the UK’s ambition to become a leading global hub for digital finance.
Date:
October 2026