Regulation
UK set to introduce comprehensive crypto regulations by July
The UK government is set to introduce comprehensive legislation to regulate crypto assets by June or July, according to Economic Secretary Bim Afolami.
Speaking at the Innovate Finance Global Summit on Monday, Afolami confirmed that the government works quickly to pass legislation that will place a wide range of crypto-related activities under the regulatory radar.
Key points:
- The UK government plans to propose legislation on stablecoins, crypto staking, exchange and custody services by June or July.
- The legislation will bring various activities related to crypto assets under the regulatory framework.
- In 2023, the UK implemented a notable Financial Markets Bill, which establishes a framework for stablecoins and cryptocurrencies.
- The Financial Conduct Authority (FCA) and the Bank of England (BoE) have consulted on the proposed stablecoin regime.
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The United Kingdom passed a landmark Financial Markets Bill in 2023. This laid the groundwork for the country’s treatment of stablecoins and cryptocurrencies as regulated financial activities.
The Financial Conduct Authority (FCA) and the Bank of England (BoE) have since consulted on what a stablecoin regime would entail. The BoE indicated that it would supervise stablecoin providers large enough to affect the financial system, while the FCA would be responsible for regulating the broader crypto space.
The UK has expressed its vision of becoming a crypto hub
Afolami had previously teased the introduction of secondary legislation on stablecoins in February, stating that the government was pushing for this to be done within six months. The Economic Secretary’s latest announcement at the Innovate Finance Global Summit confirms that the Government is on track to meet this timetable.
The Conservative Party-led government has expressed its ambition to position the UK as a crypto hub and has been consulting on its plans to regulate the sector. However, the next general election could potentially drive the Conservative Party from power.
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In October 2023, the UK government published proposals detailing its plans to regulate the cryptocurrency sector. These proposals included requiring companies to obtain authorization from the FCA to carry out crypto-related activities.
The UK’s move towards crypto regulation aligns with the global trend of governments seeking to establish frameworks for the cryptocurrency sector.
Vignesh Karunanidhi
Vignesh Karunanidhi
Writer of the Milk Route
Vignesh is a seasoned professional in the crypto field since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content including news articles, long-form articles, and articles blog, all focused on sharing. the beauty of blockchain and crypto.