Section 3ZA

For the purposes of the definition of “electronic money” in regulation 2 (interpretation), “monetary value” does not include— a stablecoin; money or an asset held for the stabilisation or backing of a stablecoin. Nothing in this regulation affects whether electronic money held for the stabilisation or backing of a stablecoin is considered electronic money, as defined by regulation 2 (interpretation). In this regulation, “stablecoin” means a cryptoasset that— meets the following two conditions— it seeks or purports to maintain a stable value in relation to a particular fiat currency (“the referenced fiat currency”), and fiat currency (which may be that referenced fiat currency) or other assets are held for the purpose of maintaining its stable value in relation to the referenced fiat currency, in accordance with paragraph (i), is fungible, is transferable, is not solely a record of value or contractual rights, including another cryptoasset, and is not excluded by paragraph (6). Where a cryptoasset seeks or purports to maintain a stable value in relation to an asset other than a fiat currency, the cryptoasset is not to be regarded as falling within paragraph (3)(a)(i) even if the asset is expressed in terms of a fiat currency. For the purposes of paragraph (3)(a)(ii)— other assets do not include the cryptoasset itself; the holding of fiat currency or another asset for the purpose of maintaining a stable value does not include the holding of assets by a person carrying on the activity described in article 5 of the Regulated Activities Order (accepting deposits), whether authorised or not, for the purpose of complying with its general prudential requirements or meeting its liabilities generally. The following are excluded from being a stablecoin— a specified investment cryptoasset, other than one specified by the following articles of the Regulated Activities Order— article 74A (electronic money); article 88F (qualifying cryptoassets); electronic money; currency of the United Kingdom or any other country or territory, including a central bank digital currency; a cryptoasset that— cannot be transferred or sold in exchange for money or other cryptoassets, except by way of redemption with the issuer, and can only be used by the holder— to acquire goods or services from the issuer, or to acquire goods or services within a limited network of service providers, which have direct commercial agreements with the issuer. For the purposes of paragraphs (1)(b) and (2), money or an asset is held for the stabilisation of a stablecoin if it is held for the purpose mentioned in paragraph (3)(a)(ii). For the purposes of paragraph (3)(c), the circumstances in which a cryptoasset is to be treated as “transferable” include where it confers transferable rights. In this regulation— “cryptoasset” has the meaning given by section 417(1) (definitions) of the 2000 Act; “fiat currency” means the currency of the United Kingdom or any other country or territory, unless that currency is solely a cryptoasset; “money” includes electronic money; “Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; “specified investment cryptoasset” has the meaning given by article 3 (interpretation) of the Regulated Activities Order.

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Source: legislation.gov.uk · retrieved 2026-09-04