The UK is preparing to introduce new legislation on cryptocurrency staking and stablecoins by July this year, as announced by Economy Minister Bim Afolami at the Innovate Finance Global Summit in London on Monday.
UK Stablecoin and Cryptocurrency Staking Bill
Apolami said he is currently working diligently to finalize the legislation needed to implement the regulatory framework. Once enacted, various cryptocurrency asset activities, including exchange operations and customer asset holdings, will be subject to regulatory oversight for the first time.
The upcoming legislation comes after the UK government announced plans for revised stablecoin regulation in October 2023. The goal is to reduce the risk of customer harm and address behavioral, soundness and financial stability risks associated with stablecoins.
However, the current Conservative-led government faces elections later this year, which could potentially impact the cryptocurrency sector's long-term financial regulation plans. The UK Labor Party maintains a solid lead over the ruling Conservative Party, and an April 2024 opinion poll showed 65% disapproval of Chancellor Rishi Sunak, an ardent cryptocurrency supporter.
The UK government has shown agility in introducing a number of policies for the cryptocurrency industry in recent years. Pass The Financial Services and Markets Bill (FMSB) was enacted in June 2023. According to a statement from the UK's Payment Services Regulator (PSR), the bill “makes clear that payment systems that process stablecoins may be subject to regulation by the PSR.”
Last March, the Financial Conduct Authority (FCA) announced measures to address this. market abuse By strengthening market monitoring capabilities and developing advanced analysis systems,
The UK government's latest digital asset regulations coincide with efforts by US lawmakers to push for similar stablecoin legislation. Reps. Maxine Waters (D-CA) and Patrick McHenry (R-NC) are leading the legislative effort in the U.S. and are seeking to add concerns about stablecoins to larger, unrelated bills to secure bipartisan support. It is possible.
Uncertainty has arisen about whether the bill can be successfully passed before the US presidential election in November.
Featured Image: Freepik
Please see disclaimer