The UK is set to propose clear crypto regulations by July.
The UK Treasury wants to propose a regulatory framework for crypto assets and stablecoins in July, aiming to encourage local innovation in digital assets and blockchain technology.
Speaking at the 2024 Innovate Finance Global Summit (IFGS), UK Treasury Economic Secretary Bhim Afolami outlined the government's efforts to lay the groundwork to improve the country's payments environment.
Alongside the UK's focus on fiat payment innovation, Afolami highlighted the importance of crypto regulations to remain globally competitive.
“When it comes to real change, I know that the cornerstone of our position as a world leader in fintech is the provision of our regulatory framework for crypto assets and stablecoins.”
Afolami also highlighted the British government's view on regulations, aiming to find the right balance between protecting customers while allowing them to innovate.
The UK Treasury is working on a final proposal “to deal with stablecoin and (crypto) staking” and plans to present it by June or July. The minister added:
“Once it goes live, a whole host of crypto asset activities, including exchanges, client assets and more, will come within the regulatory perimeter for the first time.”
Afolami announced the formation of an open finance task force during the conference.
“The task force will develop clear recommendations by suggesting a set of business incentives necessary to advance CFIT's SME credit use case for open finance,” he explained.
Related: Controversial UK law creates ‘positive friction' for crypto users
From April 26, UK authorities will be able to import crypto assets directly from exchanges and custodial wallet providers.
The law came into effect after the 2023 amendment to the Economic Crime and Corporate Transparency Act expanded the power of the National Crime Agency to seize and confiscate crypto assets that the agency suspects are linked to suspected illegal activities without having to go through extensive legal procedures.
While it doesn't explain the process, the most common way to destroy a crypto token is by burning it, transferring the tokens to a burned wallet address, and taking it out of circulation.
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