UK crypto regulations aim to counter Trump’s pro-crypto agenda.
The UK government is set to introduce new crypto regulations this month, to prevent startups from being fooled by Donald Trump's pro-crypto policies in the US. The Treasury is developing legislation focused on statcoins and staking to provide a clearer framework for the UK's appeal as a digital asset hub. Industry insiders, however, are concerned about the UK's slow regulatory progress, particularly as the EU has made progress with its markets in Cryptoassets regulation.
New policies at a glance
According to Bloomberg, to counter the growing appeal of crypto in the US, the UK Treasury is focused on stable coin legislation. Two new bills provide transparency for stablecoin providers, addressing regulatory loopholes and ensuring the country remains attractive to crypto businesses. This law may include exemptions for services such as wallets and purses, providing a stable growth framework for businesses.
Meanwhile, the UK is advancing broader regulatory efforts through the Property Bill, which would protect ownership rights in digital assets such as cryptocurrencies, NFTs and carbon credits. By legally recognizing these assets as private property, the UK aims to enhance investor protection and address issues such as fraud and ownership disputes.
Trump's impact on global crypto investment
Moreover, Trump's victory has shifted investors' attention to the US, which is seen as a safe haven for digital assets. His pro-crypto outlook, including possible moves to designate Bitcoin as a strategic reserve, could attract more international investment and create global FOMO (fear of missing out), perhaps prompting other countries to follow suit.
In turn, the UK's regulatory activities aim to stabilize crypto businesses, providing a balanced approach between investor protection and market growth to remain globally competitive.
Crypto response
UK crypto market It is showing resilience in 2024, 18% of consumers still hold crypto, the same in 2022. Sales are lower than in other countries, and a solid 59% of UK crypto holders are at least comfortable investing. 5% of their portfolio in digital assets, higher than the global average. Additionally, many former UK crypto holders are ready to re-enter, with 77% planning to buy again within the next year, indicating a firm belief in crypto as a long-term investment.
Do other countries follow Trump's crypto policies, do we know?
