The UK plans to introduce unified crypto regulation, including stablecoins, in early 2025. The new rules aim to simplify oversight and avoid restrictive staking classifications. The Labor government aims to compete with the EU's MiCA rules and the US' crypto-promoting policies.
The UK is set to introduce a comprehensive regulatory framework for cryptocurrencies, stablecoins and crypto staking services in early 2025, marking a huge shift in its approach to digital assets.
The announcement was made by Finance Minister and Economic Secretary Tulip Siddique at the City & Financial Global Tokenization Summit in London on November 21st.
The introduction of the regulations, originally scheduled for December 2024, was delayed due to a change in government after Prime Minister Keir Starmer took office as the Labor government in July 2024.
Future UK Cryptocurrency Regulatory Framework
The next framework will consolidate regulation of crypto assets into a single comprehensive regime, a decision Siddique described as “simpler and more logical.”
The framework aims to highlight fast-growing sectors facing uncertainty in the UK.
Stablecoins will receive special treatment under these regulations as their functionality is not consistent with existing payment services regulations.
Siddique stressed that staking services can also avoid being designated as a “collective investment scheme”, which could impose onerous restrictions.
UK aims to align with global cryptocurrency regulatory landscape
The UK government's renewed focus on digital asset regulation comes as it aims to keep pace with global developments. The European Union's Market in Cryptoassets (MiCA) Regulation will be fully implemented by the end of 2024, providing regulatory certainty and positioning Europe as an attractive market for the cryptocurrency industry.
On the other hand, the United States under the administration of President Donald Trump has taken a markedly pro-cryptocurrency stance, including the establishment of a “cryptocurrency czar” in the White House and SEC Chairman Gary Gensler's scheduled retirement in January 2024. I'm taking it.
The Labor government has signaled its intention to catch up with international competition. In September 2024, the government introduced a bill that would recognize NFTs, cryptocurrencies, and carbon credits as property.
The push for new regulations reflects the UK's ambitions to restore credibility as a crypto hub while addressing criticism of what it says is tighter scrutiny from the Financial Conduct Authority.
The Labor government aims to strengthen the UK's position in the multi-billion dollar cryptocurrency industry by providing a robust and streamlined framework.
