The UK announced a regulatory framework for crypto and stablecoins early next year
The UK will introduce unified crypto regulations, including stablecoins, in early 2025. New rules aim to simplify regulation and remove restrictive staking classifications. The Labor government aims to compete with EU MCA rules and US pro-crypto policies.
United Kingdom It is set to introduce a comprehensive regulatory framework for cryptocurrencies, stablecoins and crypto staking services as early as 2025, marking a significant shift in its approach to digital assets.
In the year The announcement was made by Economic Secretary to the Treasury Tulip Siddiq at the London City and Finance Global Tokenization Summit on November 21.
Due to the change of government following the election of Prime Minister Keir Starmer as a Labor administration in July 2024, the takeover was delayed to December 2024.
The upcoming UK crypto regulatory framework
The upcoming framework consolidates the rules of crypto assets into a single and comprehensive regime, which the decision is described as “simpler and more reasonable”.
The framework aims to bring clarity to a fast-growing sector in the UK that is plagued by uncertainty.
Stablecoins receive a different treatment according to these regulations, because their functionality does not comply with the current regulations of payment services.
Siddique pointed out that the provision of services would avoid being classified as “mutual investment schemes” which could create severe restrictions.
The UK aims to align with the global crypto regulatory landscape.
The UK government's renewed focus on digital asset regulation comes as it seeks to catch up with international developments. EU Markets in Crypto-Assets (MiCA) regulations will be fully implemented by the end of 2024, providing regulatory certainty that has made Europe an attractive market for the crypto industry.
Meanwhile, the US, under President Donald Trump's administration, has taken a significant pro-crypto stance, including the installation of a White House “crypto czar” and plans to oust SEC Chairman Gary Gensler in January 2024.
The Labor government has shown its desire to pursue international competition. In September 2024, it introduced a bill that recognizes NFTs, cryptocurrencies and carbon credits as assets.
The new regulatory push reflects the UK's desire to regain credibility as a crypto hub amid criticism of the Financial Conduct Authority's strict controls.
The Labor government aims to strengthen the UK's position in the multi-billion dollar crypto industry by providing a strong and streamlined framework.
