The United Kingdom has hinted that it could pass comprehensive new legislation that regulates crypto and stablecoins within the next 6 months.
The new legislation aims to bring clarity to stablecoins and staking services in the UK.
New Legislation Incoming
The upcoming Crypto and Stablecoin Regulations 2024 will bring clarity to stablecoins and staking services. Speaking at an event in London on the 19th of February, the Economic Secretary to the Treasury, Bim Afolami, stated that the UK government was working to ensure that the proposed new legislation was passed before this year’s general election. Afolami stated,
“We’re very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable.”
However, Afolami remained evasive when asked for more specific details regarding the regulations.
“Short answer is, I don’t know […] There’s just a huge amount going on, so I don’t want to commit to that now.”
The comments by the Economic Secretary to the Treasury came after the Treasury promised to provide greater clarity regarding crypto legislation in 2024. Afolami has taken a positive stance on crypto, and the proposed new regulations within a year of his election further boost his position as a crypto supporter.
Little Progress
There has been little progress since Prime Minister Rishi Sunak pledged to make the UK a global crypto hub and emphasized the need for crypto firms to be able to invest, innovate, and scale up their operations in the UK. However, little progress has been made regarding crypto regulation despite calls for more concise rules for crypto firms operating in the country. On the 3rd of July, the UK Law Commission published recommendations that focused on reforming domestic laws on crypto use and ownership.
The commission pushed for the creation of a new category of personal property that would accommodate and protect the unique features offered by digital assets. It also recommended that the government conduct a common law analysis of digital assets and establish an industry-specific panel of technical experts, academics, and legal practitioners to advise courts about crypto and crypto-related issues.
The government stated in October 2023 that it would introduce more crypto-specific regulation in 2024 and also brought fiat-backed stablecoins under the purview of the FCA. The UK is busy getting ready for its impending general elections, scheduled to be held sometime in the second half of 2024. Currently, the Labour Party, which is understood to be less favorable towards crypto, is leading the early polls.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
