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Regulation 3A Arrangements not constituting an AIF: qualifying stablecoin arrangementsF1F2

(1)

Arrangements do not constitute an AIF where—

(a)

they are arrangements under which money or an asset is held for the stabilisation of a qualifying stablecoin, and

(b)

both the conditions in paragraph (2)(a) and (b) are met.

(2)

The conditions referred to in paragraph (1)(b) are—

(a)

that the issuer of the qualifying stablecoin does not pay, or arrange for another to pay, interest or yield arising from money or an asset held for the stabilisation of the qualifying stablecoin, or the benefits accruing from such to a holder;

(b)

that under normal conditions, the qualifying stablecoin offers a holder a right to redeem the stablecoin with the issuer at the same value, in the currency the stablecoin referenced at issue (excluding any fees that may be payable on redemption).

(3)

For the purposes of this regulation—

(a)

“qualifying stablecoin” has the meaning given by article 88G of the Regulated Activities Order (qualifying stablecoin);

(b)

money or an asset is held for the stabilisation of a qualifying stablecoin if it is held for the purpose mentioned in article 88G(2)(b) of the Regulated Activities Order.

Annotations

Textual amendments

F1

Regulations revoked (14.12.2023 for the revocation of reg. 79) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/1382, reg. 2(c)(vi)

F2

Reg. 3A inserted (25.2.2026 for specified purposes) by The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 47(2) (with regs. 53-56)