The UK Labour government announced plans to release a unified cryptocurrency regulatory framework in early 2025. Economic Secretary to the Treasury Tulip Siddiq revealed the initiative at the City & Financial Global Tokenisation Summit, emphasizing a simplified approach to overseeing stablecoins and staking services.
Streamlining Crypto Oversight
The proposed framework aims to integrate rules for stablecoins and staking into a single regime, simplifying oversight and aligning with the evolving nature of the industry. Stablecoins will no longer fall under outdated payment services regulations, while staking will be treated as a technology service instead of a collective investment scheme.Positioning the UK in a Global Race
The UK seeks to catch up with jurisdictions like the EU, which has implemented Markets in Crypto Assets (MiCA). Industry leaders, such as Paybis founder Innokenty Isers, warn that delaying crypto regulations could leave the UK behind in the financial innovation race.Competing in a Pro-Crypto World
As President-elect Donald Trump promises favorable U.S. crypto policies, the UK aims to remain competitive by attracting blockchain businesses and technological advancements, ensuring long-term benefits for its economy.
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