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UK plans comprehensive crypto regulations by early 2025

UK plans comprehensive crypto regulations by early 2025

GrafaGrafa2024/11/22 07:00
By:Liezl Gambe

The United Kingdom is set to introduce a comprehensive regulatory framework for crypto assets, stablecoins, and staking services by early 2025.  

This announcement came from Economic Secretary to the Treasury Tulip Siddiq during the City & Financial Global’s Tokenisation Summit in London on November 21.  

The framework will address gaps in existing laws, with a single-phase approach deemed more practical.  

"Doing everything in a single phase is simpler and it just makes more sense," Siddiq stated.  

Stablecoins will not be regulated under current payment service laws due to their distinct use cases, and the government plans to remove legal uncertainties surrounding staking services, which it does not consider a “collective investment scheme.”  

The Labour government, led by Prime Minister Keir Starmer, assumed office in July 2024 after a general election disrupted earlier plans for regulations under former Prime Minister Rishi Sunak’s Conservative government.  

While Sunak had aimed to position the UK as a cryptocurrency hub, progress was hampered by perceptions of a challenging regulatory environment, often attributed to the independent Financial Conduct Authority.  

Meanwhile, Europe is moving ahead with its Markets in Crypto-Assets (MiCA) framework, which will take full effect by the end of 2024, offering regulatory clarity.  

The United States is also drawing attention with pro-crypto policies under the Trump administration, making the UK’s regulatory delays less attractive to the global crypto industry.  

The Labour government’s initial steps include a bill proposed in September to clarify the legal status of non-fungible tokens (NFTs), cryptocurrency, and carbon credits.  

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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