Catenaa, Monday, November 25, 2024- The United Kingdom will unveil its long-anticipated regulatory framework for cryptocurrencies and stablecoins early next year, Economic Secretary Tulip Siddiq has announced.
The framework aims to end months of uncertainty in the industry and align with the country’s Financial Services and Markets Act, which already treats crypto as a regulated activity.
Siddiq speaking Thursday last week at the Tokenisation Summit, emphasized that the new rules would include specific provisions for stablecoins and staking services.
Under the proposed guidelines, stablecoins will no longer fall under the UK’s payments regime, and staking will be carved out from collective investment regulations to support innovation.
The move follows the election of a Labour government in July, which pledged to implement proposals introduced by its Conservative predecessor.
These include creating regulated activities for crypto trading platforms and establishing market abuse safeguards for digital assets.
The UK’s initiative coincides with the rollout of the European Union’s Markets in Crypto Assets (MiCA) framework. MiCA allows licensed crypto-asset providers in one EU member state to operate across all 27 nations and introduces stablecoin-specific rules that took effect in June.
