UK to unveil new crypto regulations: Laws on stablecoins and staking expected within 6 months
TechFlow Selected TechFlow Selected
UK to unveil new crypto regulations: Laws on stablecoins and staking expected within 6 months
The outcome of regulatory developments could shape the future landscape of the UK crypto industry.
Navigating Web3 tides with focused insightsSource: Bitcoinist
Translation: Blockchain Knight
According to Bloomberg, the UK government plans to implement new crypto regulations for stablecoins and staking services within the next six months.
With a general election approaching, Economic Secretary to the Treasury Bim Afolami said the government is determined to accelerate the legislative process.
Speaking at an industry event hosted by Coinbase in London, Afolami emphasized the government’s commitment to swiftly addressing crypto-related issues. "We are very clear that we want to get on with these things as quickly as possible. I think all of this is deliverable within the next six months," Afolami stated.
The Treasury initially pledged in October to provide greater clarity for specific areas of the crypto industry by 2024.
That commitment followed earlier consultations on fiat-backed stablecoins—digital tokens pegged one-to-one in value to traditional currencies like the dollar or pound through asset reserves.
The Financial Services and Markets Act, passed last summer, has further paved the way for regulatory progress. Blockchain analytics firm Elliptic and other market observers expect fiat-backed stablecoins and their issuers to be regulated under existing payment laws.
This move would grant UK financial regulators the authority to determine which types of assets can back stablecoins.
Staking—the process where investors lock up their tokens to support blockchain operations in exchange for small returns—is expected to receive a new classification to avoid being treated as a collective investment scheme. Tom Duff Gordon, Vice President of International Policy at Coinbase, confirmed this in an interview.
However, broader proposals to bring cryptocurrency exchanges and other industry providers under existing financial services rules remain unresolved.
When asked about a potential timeline for such guidance becoming law, Afolami acknowledged he could not offer a precise estimate due to the "broad" range of ongoing developments.
Prime Minister Rishi Sunak pledged in 2022 to make the UK a global hub for crypto assets, aiming to attract digital asset firms and investment. However, since then, regulatory progress has been limited, and crypto companies say the lack of clear rules continues to hinder operations.
In 2023, the UK government confirmed plans to strengthen oversight of crypto asset activities, bringing them under the same framework as traditional financial services.
These plans include requiring crypto exchanges to establish detailed admission criteria and disclosure requirements for token issuers when listing new assets. This could involve providing information on the underlying code of tokens, known vulnerabilities, and risks.
City Minister Andrew Griffith emphasized the need to create a clear environment for investment and innovation in crypto, while ensuring customer protection. He also stated, "The UK is the place to start and scale crypto asset businesses."
As the government pushes forward with regulatory reforms, the industry awaits further details on specific legislation and the potential implications of the UK's adoption of crypto assets.
The outcome of these regulatory developments may shape the future landscape of the country's crypto industry, with stakeholders closely watching their implementation and impact.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@bitcoinist
