The UK government is preparing to introduce new legislation to regulate stablecoins and staking activities within the cryptocurrency space by mid-2024.
Government push for rapid regulation
i will be apolamiThe Minister of Finance and Economic Affairs emphasized the government’s commitment to expediting the process of passing regulations on stablecoins and staking. Speaking at an industry event, Apolami emphasized the urgency of enacting legislation within the next six months.
Revealing phased regulatory approach
The UK has adopted a phased approach to regulating the cryptocurrency sector. Last October, the Treasury Department unveiled an initial proposal focused on overseeing fiat-backed stablecoins, particularly in the payments area. This initial step lays the foundation for subsequent regulations covering the broader cryptocurrency asset landscape.
The UK government plans to get new rules on stablecoins and cryptocurrency asset staking services approved by lawmakers within the next six months, Finance Minister Bim Afolami said https://t.co/ltR4qahvdG It was stated in
— Bloomberg Cryptocurrency (@crypto) February 19, 2024
Also read: UK introduces digital securities sandbox regulatory framework
Stablecoin oversight led by regulatory trio
Under the proposed rules, a coalition of regulators including the Bank of England, the Financial Conduct Authority and the Payment Systems Regulator would jointly oversee certain fiat-backed stablecoins. . These regulatory measures follow a consultation in February to improve the UK’s approach to regulating cryptocurrency assets within the financial services sector.
Reactions and feedback from industry players
The proposed rule drew mixed reactions from industry stakeholders. While some see the regulatory framework as a positive step towards establishing the UK as a cryptocurrency-friendly hub, others are cautiously optimistic. Chancellor of the Exchequer Andrew Griffith welcomed the stablecoin framework, acknowledging it was a step in the right direction following months of public anticipation.