GBBC Responds to HM Treasury’s Consultation on Modernising Payment Services Regulation

GBBC has responded to HM Treasury’s Consultation on Modernising Payment Services Regulation.

Our response recommends a clear and proportionate framework for tokenized payments, supporting innovation while preserving consumer protection and avoiding duplication between payments and cryptoasset regulation. Priorities include:

💡 Clear Definitions: Update the payments perimeter for tokenized value, while preserving distinctions between deposits, electronic money and stablecoins. A blockchain address or self-hosted wallet should not automatically become a payment account.

💡 Coherent Authorization: Avoid a second full authorization for stablecoin issuers providing payment services integral to issuance, redemption and transfer. Additional payment activities should follow a streamlined process that reuses existing regulatory assessments.

💡 Safeguarding Without Duplication: Distinguish the protection of issuer backing assets, customer cryptoassets and value held for payment execution, with clear responsibilities and no duplicate requirements for the same asset or entitlement.

💡 Workable Cross-Border Recognition: Establish transparent, outcomes-based recognition of overseas stablecoin regimes, with transitional arrangements to avoid disrupting established payment and treasury use cases.

We recommend dedicated HMT workshops on definitions, regulated activities, and the interaction between safeguarding regimes.

Read our response here.