UK to Roll Out New Crypto and Stablecoin Legislations in July

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The UK government intends to pass new laws this summer to oversee the creation and application of cryptocurrencies and stablecoins within the country. This information was shared by the Economic Secretary, Bim Afolami, during the Global Summit on Innovative Finance held on April 15, 2024. According to a CoinDesk report, Afolami announced that these regulations will be implemented in the coming months, between June and July of this year.

UK to Regulate Trading and Staking Cryptocurrencies

The British minister announced that the new legislation will apply to various sectors of the burgeoning digital economy. This includes buying and selling cryptocurrencies on platforms, serving as a provider of virtual asset solutions (VASPs), and securely storing digital currencies for clients.

“Currently, we’re expediting the process to pass the legislation and implement our proposed regulations for our crypto asset framework. After its enactment, various crypto activities such as running an exchange, holding customers’ assets, among others, will fall under our regulatory jurisdiction for the first time,” Afolami explained at the summit.

Another aspect of the law will reach out to additional industries’ functions, including staking – a feature enabling users to generate passive income through their digital assets.

In February 2024, during a Coinbase conference in London, the UK’s economic secretary indicated that the government aimed to finish implementing the new regulation within half a year. However, Afolami did not disclose specifics about the forthcoming law at that point.

UK’s Crypto Ambitions and Regulatory Developments

In July, the UK intends to implement new regulations for cryptocurrencies and stablecoins as part of its strategy to establish itself as a leading global center for digital currencies.

In early 2022, Rishi Sunak, Prime Minister of the United Kingdom, announced plans to make the UK a top financial hub, specifically catering to the needs of cryptocurrency firms, including their day-to-day activities, financial investments, new ideas, and growth.

In July 2023, the UK’s Law Commission proposed four significant changes to update the country’s crypto regulations. These suggestions paved the way for recognizing stablecoins and other digital currencies as regulated financial transactions.

In the same year, during the month of February, the Financial Conduct Authority (FCA) and the Bank of England (BoE) in the UK initiated consultations to support the government’s goal of establishing the country as a leading financial hub on a global scale.

The objective of the consultation was to set up a regulatory structure for stablecoins. The BoE announced its intention to oversee the oversight of major stablecoin providers whose activities might affect the financial system, while the FCA was tasked with regulating the entire crypto market.

Although positive advancements are being made in crypto regulation in the UK, the upcoming general election adds a degree of unpredictability to this area. If the Conservatives fail to secure victory, their crypto-related proposals could be postponed or altered due to the Labour Party’s current favoritism to win the election.

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2024-04-15 16:54