UK Government Accelerates Approval of Stablecoin and Crypto Asset Staking Regulations
The British government is expediting the approval of new regulations for stablecoins and crypto asset staking services, aiming to have these rules passed by lawmakers within the next six months, according to Bloomberg. This move comes as pressure mounts to deliver concrete proposals before an impending general election.
Expedited Crypto Legislation
Economic Secretary to the Treasury, Bim Afolami, announced this commitment during an industry event hosted by Coinbase in London. Afolami expressed confidence that tangible progress can be achieved within the specified timeframe.
The Treasury had previously pledged to offer enhanced clarity on specific areas of cryptocurrency regulation by 2024. Market observers anticipate that fiat-backed stablecoins and their issuers will be subjected to regulation under existing payment laws, enabling the UK’s financial regulator to dictate which asset types can underpin stablecoins.
Staking services are also set to receive a new classification that overcomes categorization as collective investments. Clear regulatory frameworks are crucial for fostering innovation while ensuring investor protection.
Crypto Regulation Delays Persist
While progress has been made in regulating stablecoins and staking services, broader proposals to bring crypto exchanges and industry providers under existing financial services regulations remain unresolved. The complexity of ongoing developments within the sector has made it difficult to provide a definitive timeline for guidance.
The UK government aims to make the country a leading center for crypto businesses and investments. However, slow progress in regulatory measures has caused concerns among crypto firms about the unclear regulations affecting their operations.
In October 2023, the UK government expressed its plan to regulate the crypto sector under its financial laws, requiring companies to secure approval from the Financial Conduct Authority (FCA) for crypto-related operations. This has led to some companies halting their services in the UK and others facing regulatory hurdles and shrinking market share.
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