The UK is set to introduce new crypto regulations to bolster its status as a digital hub amid competition from the US.
New Legislative Initiatives
According to Bloomberg, the UK government plans to introduce new laws regarding stablecoins and staking. This aims to provide clarity for stablecoin providers and address regulatory gaps, ensuring the country's attractiveness to crypto businesses. The legislation may include exemptions for services like staking and custodial wallets, offering businesses a stable framework for growth. Additionally, the UK is advancing in recognizing digital assets such as cryptocurrencies and NFTs as personal property, enhancing investor protection.
Impact of Donald Trump's Policies
Donald Trump's victory has shifted investor focus towards the US, seen as a safe haven for digital assets. His pro-crypto stance, including potentially designating Bitcoin as a strategic reserve, could attract global investment and trigger a worldwide FOMO (fear of missing out), possibly pushing other countries to follow suit.
Crypto Market Reaction in the UK
The UK crypto market shows resilience in 2024, with 18% of consumers still holding crypto, the same as in 2022. Sell-offs have been lower than in other countries, and 59% of UK crypto owners are comfortable investing at least 5% of their portfolios in digital assets. Furthermore, 77% of former holders plan to re-enter the market within the next year, reflecting steady confidence in crypto as a long-term investment.
The UK aims to balance investor protection with market growth to maintain its competitiveness on the global stage.
