UK's Six-Month Plan to Regulate Stablecoins and Crypto Staking Before General Election
Summary:
The UK plans to introduce laws governing stablecoins and cryptocurrency staking in the next six months. Economic Secretary to the Treasury Bim Afolami confirmed the government's commitment to approve new regulations ahead of the upcoming general election. These regulatory moves follow Prime Minister Rishi Sunak's 2022 pledge to establish the country as a "global crypto hub". Despite some progress, there are expectations related to further specific regulations, including those governing fiat-backed stablecoins. These changes come ahead of the UK's general election, where the crypto-receptive Labour party currently leads in early polls.
The United Kingdom is set to introduce new legislation governing stablecoins and cryptocurrency staking, with the goal of implementation within the coming half year. On February 19, at a crypto-centric event in London hosted by Coinbase, the Economic Secretary to the Treasury Bim Afolami expressed that the administration is diligently striving to approve the new regulations before the imminent general election, as per Bloomberg. "We're committed to expedite these matters. I believe it's feasible to achieve these within the next six months," said Afolami. However, he refrained from delving into specifics about the much-anticipated crypto laws. In 2022, UK's Prime Minister Rishi Sunak made a commitment for UK to emerge as a "global crypto centre," underscoring the necessity for crypto entities to "invest, evolve and expand" in the UK. Regrettably, there has been a negligible progression in terms of clear-cut regulations in the nation, in spite of continuous demand from domestic crypto companies. The UK Law Commission put forth four significant suggestions on July 3, to amend local laws on crypto usage and possession. The commission advocated for the formation of a novel "distinct" personal property classification to accommodate and safeguard the distinctive aspects of digital assets. The proposal also included a directive for the administration to undertake a common law assessment of crypto assets, and to create a specialized advisory panel comprising technical experts, academicians, and legal professionals to counsel courts on crypto-related legal matters. On October 30, 2023, the UK government announced its intention to unveil more crypto-specific legislation in 2024, and to bring the regulation of fiat-collateralized stablecoins under the jurisdiction of the Financial Conduct Authority (FCA). The UK is on the verge of its general election, likely to be held in the latter half of the year, with the Labour party, traditionally thought to be less receptive to crypto, leading in the early polling.
Published At
2/20/2024 5:55:18 AM
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