“We are now working at pace to deliver the legislation to put our final proposals for our regime in place,” Afolami said. “Once it goes live, a whole host of crypto asset activities, including operating an exchange, taking custody of customers’ assets and other things, will come within the regulatory perimeter for the first time.”
UK’s timeline to develop crypto regulatory framework
In February, Afolami, the Member of Parliament for Hitchin and Harpenden, affirmed that the UK government aimed to complete secondary stablecoin legislation within six months.
In October 2023, the UK government published proposals that outlined its intention for regulating the crypto sector. They included a requirement that firms obtain authorization from the Financial Conduct Authority (FCA) to perform crypto-related activities.
October’s proposals followed the UK Treasury’s consultation response in August that agreed on an arrangement that the Bank of England and the FCA would co-supervise systemic stablecoins.
Earlier in 2023, the UK passed the Financial Services and Markets Bill, establishing the groundwork for regulators to commence developing a framework for overseeing stablecoins and cryptocurrency financial activities within the country.
