The British government is planning to implement a new regulatory framework for cryptocurrencies by December 2024. The focus will be on stablecoins and staking to retain crypto companies amidst policy shifts in the US.
UK's Plans for New Crypto Laws
According to sources, the UK Treasury is preparing two key legislative measures concerning crypto assets. One will focus on stablecoin regulation, and the other will propose adjustments to exempt staking from certain financial rules.
Stablecoin Regulation and Staking Exemption
The proposed legislation is expected to empower the Financial Conduct Authority (FCA) to establish specific regulations on stablecoins. It also aims to reduce regulatory scrutiny on staking by classifying it outside the framework of traditional investment schemes.
FCA's Approach and Previous Government Efforts
The previous UK government led by Rishi Sunak aimed to establish the country as a global leader in the crypto industry with a focus on stablecoin regulation. FCA has maintained strict registration standards for crypto firms, deeming them crucial for a sustainable digital asset industry.
The new legislative initiatives are set to strengthen the UK's position in the crypto market by providing clearer frameworks for regulating stablecoins and staking.
