HM Treasury Consults On A Future-proof Framework For Payments, Stablecoins And Open Banking

The UK's payments regulatory framework may be about to undergo its most significant overhaul since the introduction of the Payment Services Regulations 2017 (PSRs). HM Treasury is consulting on plans to modernise the regulation of payment services and electronic money, with a particular focus on tokenised payments, stablecoins, Open Banking and emerging AI-powered payment models. 

The government argues that the PSRs and Electronic Money Regulations 2011 (EMRs) have successfully supported innovation and competition, helping to create a market that now includes almost 1,200 authorised or registered firms. However, technological developments, including blockchain-based payments, Open Banking, tokenisation and AI, are challenging a regime that was largely designed before these developments emerged.