The United Kingdom is set to implement new laws governing stablecoins and crypto staking within the next six months, according to Economic Secretary to the Treasury Bim Afolami. Speaking at a crypto event in London, Afolami stated that the government is working diligently to ensure that the legislation is passed before this year’s general election. While he did not provide specific details about the regulations, Afolami acknowledged the significant amount of work being done in this area.
In 2022, U.K. Prime Minister Rishi Sunak announced plans to establish the country as a leading global crypto hub, emphasizing the need for crypto companies to have the freedom to invest, innovate, and grow within the United Kingdom. Despite calls from crypto firms for clearer regulations, little progress has been made on this front.
However, on July 3, 2023, the U.K. Law Commission released four key recommendations to reform domestic laws regarding crypto usage and ownership. These recommendations included the creation of a distinct category of personal property to protect the unique features of digital assets, a common law analysis of crypto assets, and the establishment of an industry-specific panel of experts to advise courts on legal matters related to crypto.
On October 30, 2023, the U.K. government announced its intention to introduce more specific regulations for the crypto industry in 2024. Additionally, the regulation of fiat-backed stablecoins would fall under the jurisdiction of the Financial Conduct Authority (FCA).
As the country prepares for its upcoming general election, expected to take place in the second half of 2024, early-stage polls suggest that the Labour Party, which may be less supportive of crypto, is in the lead.
Overall, the United Kingdom is making strides towards implementing comprehensive crypto regulations, aiming to create a conducive environment for crypto businesses to thrive within its borders.