The United Kingdom is gearing up to introduce new regulations on stablecoins and crypto staking services within the next six months. The push for these regulations is intensifying as the general elections approach, putting pressure on the government to act swiftly.
Government’s Commitment to Legislation
At a Coinbase London event, Bim Afolami, the Economic Secretary to the Treasury, emphasized the government’s commitment to advancing these legislative initiatives. He said:
“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.”
Previous Promises and Ongoing Consultations
Last October, the Treasury promised to improve regulations on certain aspects of cryptocurrency within the year. This promise came after another consultation on fiat-backed stablecoins and the passage of the broader Financial Services and Markets Act during the summer.
Analysts’ Views on Stablecoins
Market analysts, including those from Elliptic, believe that fiat-backed stablecoins and their issuers will be regulated under existing payment laws. This approach would allow the UK’s financial advisors to determine the types of assets that can support stablecoins.
Crypto Staking and Exchanges
Tom Duff Gordon, Vice President for International Policy at Coinbase, mentioned in an interview that crypto staking is likely to receive a new classification to avoid being labeled as a collective investment.
Meanwhile, proposals regarding the regulation of crypto exchanges and other industry players under existing financial services regulations are still pending. Bim Afolami did not provide a specific timeline for when these regulations might be enacted.
