The UK Will Introduce a Regulatory Framework for Crypto Next Year
The United Kingdom is preparing to introduce a draft regulatory framework for crypto assets in early 2022, according to a Treasury official. Initially expected last summer, the regulations were delayed due to a change in government after a general election.
The Labour government, led by Keir Starmer, will now be responsible for presenting the new regulations. Tulip Siddiq, the Economic Secretary to the Treasury, announced that the regulations will cover stablecoins, staking services, and cryptocurrencies. She stressed the importance of addressing all aspects in a comprehensive manner.
While legislation for stablecoins has been under discussion since October 2023, Siddiq acknowledged that stablecoins do not fit seamlessly into existing payment services regulations and that the industry was not anticipating regulation until 2025.
The classification of staking services as a “collective investment scheme” has also been a concern for the crypto industry, but Siddiq assured that the government intends to clarify this issue. Under the previous Conservative government, the UK was aiming to become a leading cryptocurrency hub, but its regulatory environment has been perceived as challenging.
