In U.K. Parliament Wednesday, Chancellor of the Exchequer Nadhim Zahawi introduced a Financial Services and Markets bill that includes rules for stablecoins.

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Nadhim Zahawi, who recently stepped into the role of chancellor after Rishi Sunak stepped down, said that, under the bill, stablecoins and "digital settlement assets" would be regulated as a form of payment in the U.K.

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He went on to note that the new legislation would help the government deliver on its “vision for an open, green, and technologically advanced financial services sector” that would be globally competitive.

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"In fostering these new innovations, the bill will also enable the creation of Financial Markets Infrastructure Sandboxes – allowing firms to test the use of new technologies and practices in financial markets, increasing efficiency, transparency and resilience of new products," the Treasury said in a press release. 

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The bill would require issuers of stablecoins that are used as a means of payment to apply for a license with the Financial Conduct Authority (FCA). Lawmakers in both the House of Parliament and the House of Lords will have to pass the bill before it is written into law.

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Earlier this year, the U.K. Treasury first announced a set of initiatives to become a global hub, including bringing stablecoins under the U.K. payments regulation to “enable consumers to use stablecoin payment services with confidence.”

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