The UK government is on track to introduce comprehensive legislation for the regulation of crypto assets by June or July, according to Economic Secretary Bim Afolami.
Speaking at the Innovate Finance Global Summit on Monday, Afolami confirmed that the government is working swiftly to deliver the legislation that will bring a wide range of crypto-related activities under the regulatory radar.
Key points:
- The UK government plans to put forward legislation for stablecoins, crypto staking, exchange, and custody services by June or July.
- The legislation will bring various crypto asset activities under the regulatory framework.
- In 2023, the UK implemented a notable financial markets bill, which established a framework for stablecoins and crypto.
- The Financial Conduct Authority (FCA) and the Bank of England (BoE) have consulted on the proposed stablecoin regime.
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The UK passed a landmark financial markets bill in 2023. This laid the groundwork for the country’s treatment of stablecoins and cryptocurrencies as regulated financial activities.
Both the Financial Conduct Authority (FCA) and the Bank of England (BoE) have since consulted on what a stablecoin regime would entail. The BoE has indicated that it will oversee stablecoin providers that are large enough to affect the financial system, while the FCA will be responsible for regulating the broader crypto space.
UK expressed vision to become a crypto hub
Afolami had previously teased the introduction of secondary stablecoin legislation in February, stating that the government was pushing to get it done within six months. The Economic Secretary’s latest announcement at the Innovate Finance Global Summit confirms that the government is on track to meet this timeline.
The Conservative Party-led government has expressed its ambition to position the UK as a crypto hub and has been consulting on its plans to regulate the industry. However, the upcoming general election could potentially remove the Conservative Party from power.
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In October 2023, the UK government released proposals detailing its plans for regulating the cryptocurrency sector. These proposals included a requirement for firms to obtain authorization from the FCA to perform crypto-related activities.
The UK’s move towards crypto regulation aligns with the global trend of governments seeking to establish frameworks for the cryptocurrency industry.
