Britain is poised to introduce new legislation to regulate stablecoins and exempt staking from financial norms. These measures aim to attract investors and strengthen the country's position in the cryptocurrency sphere.
Plans for Stablecoin Regulation
The British government plans to introduce new rules for stablecoins like Tether and USDC by December this year. The UK Treasury is amending existing rules to exempt staking from financial regulations and focus on stablecoins. This will allow the Financial Conduct Authority (FCA) to establish its regulations for stablecoins.
Reassessing Staking
Staking, a process where investors lock up tokens to earn rewards, will be reclassified to prevent it from being subjected to regulations applicable to collective investment schemes. This will relieve detailed oversight and simplify procedures for staking users in the UK.
Political Context and International Comparison
While Donald Trump has been elected as the new President in the US and aims to position the country as a global crypto hub, Britain is trying not to lag behind. As the EU has already presented its MiCA regulation, the UK seeks to align its laws with international standards. As per a statement by UK Justice Minister Heidi Alexander, owners of cryptocurrencies should be shielded from fraud and ownership disputes should be streamlined. This proposal is in line with efforts to recognize cryptocurrencies as personal property.
Britain is taking decisive steps to establish clear and enticing frameworks for crypto investors. Although progress on crypto regulation has slowed under the new government, changes are planned to enhance the country's standing in the rapidly growing crypto industry.
