UK plans to bring stablecoin, crypto staking regulations in next six months- Republic World
Updated February 20th, 2024 at 18:01 IST
UK Law Commission issued four key recommendations aimed at reforming domestic laws governing crypto usage and ownership.
After the data released, British pound experienced gains against both the US dollar and the Euro. | Image:Unsplash
Crypto regulations in UK: The United Kingdom is set to enact new legislation to regulate stablecoins and crypto staking within the next six months, according to reports. During an event organised by Coinbase in London on February 19, Economic Secretary to the Treasury Bim Afolami revealed that the government is working to enact the new laws before the forthcoming general election later this year.
Afolami underlined the government’s commitment to expedite the legislative process, stating, “We’re very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable.”
However, Afolami refrained from providing specific details regarding the anticipated crypto regulation when pressed for more information, stating, “Short answer is, I don’t know… There’s just a huge amount going on, so I don’t want to commit to that now.”
Prime Minister Rishi Sunak had previously pledged in 2022 to position the UK as a ‘global crypto hub,’ highlighting the importance of creating an environment conducive for crypto firms to invest, innovate, and expand within the UK. Despite this commitment, progress on implementing comprehensive crypto regulation has been sluggish, despite calls from crypto firms operating in the UK for clearer regulatory frameworks.
In July 2023, the UK Law Commission issued four key recommendations aimed at reforming domestic laws governing crypto usage and ownership. These recommendations included the establishment of a new category of personal property to accommodate digital assets’ unique characteristics, as well as the creation of an industry-specific panel to advise courts on crypto-related legal matters.
The UK government declared its plan to implement more customised regulations for the crypto sector in 2024, which encompasses subjecting fiat-backed stablecoins to the supervision of the Financial Conduct Authority (FCA).
As the UK prepares for its general election, expected in the latter half of the year, the Labour government currently leads in early-stage polls. The stance of the Labour government towards crypto remains a topic of interest, as it is generally perceived to be less sympathetic towards the industry.
