UK Crypto Legislation To Be Launched In The Next 6 Months

Key Points:

• UK government plans to regulate stablecoins and staking services within six months.
• The Economic Secretary emphasizes the urgency to prompt the UK crypto legislation delivery.
• Regulatory uncertainty hampers UK’s crypto hub ambitions; broader crypto rules timeline remains unclear.

The UK government is intensifying efforts to enact legislation governing stablecoins and staking services for crypto assets within the next six months, aiming to address mounting pressure ahead of an impending general election.

UK Crypto Legislation Accelerated by Government

According to Bloomberg, Economic Secretary to the Treasury, Bim Afolami, emphasized the urgency during a recent event hosted by Coinbase in London, affirming the government’s determination to push through regulations promptly.

The UK crypto legislation builds on previous commitments, with the Treasury aiming to provide regulatory clarity on specific crypto areas by 2024, following consultations and the passage of the Financial Services and Markets Act. Observers anticipate fiat-backed stablecoins and their issuers to fall under existing payment regulations, while staking may receive a distinct classification to avoid being labeled a collective investment.

Regulatory Uncertainty Clouds UK’s Crypto Ambitions

Prime Minister Rishi Sunak‘s vision to establish the UK as a global crypto hub in 2022 faces challenges due to regulatory ambiguity, hindering operations for crypto firms. Afolami acknowledged the complexity of broader crypto regulation, refraining from committing to a timeline beyond stablecoins and staking.

The proposed UK crypto legislation aligns with the government’s broader strategy to bolster the UK’s position in the digital asset landscape, attracting investment and fostering innovation. However, the regulatory landscape remains uncertain, prompting calls for swift action to provide clarity and support for the burgeoning crypto industry.