UK to Draft a Regulatory Framework for Crypto, Stablecoins Early Next Year

As a seasoned crypto investor with over a decade of experience navigating the volatile and often unpredictable world of digital currencies, I must say that the U.K.’s decision to draft a regulatory framework for the industry by early next year is both reassuring and exciting. The uncertainty we’ve faced for months under the Labour government has been like riding a roller coaster without knowing when the loop is coming.

By early next year, it’s expected that the United Kingdom will create a regulatory structure specifically designed for the cryptocurrency sector, according to Economic Secretary Tulip Siddiq, who made this announcement during a conference held in London on Thursday. This information was obtained by Bloomberg.

According to Siddiq’s statements at the Tokenisation Summit hosted by City & Financial Global, the proposals aim to exempt stablecoins from the U.K.’s payment system regulations. Additionally, guidelines for staking will be implemented to ensure they are not classified as a type of collective investment scheme.

After months of indecision regarding the Labour administration’s intentions for the sector following their election in July, the announcement has finally been made. The Conservative administration had previously established regulations to categorize crypto as a regulated activity under the Financial Services and Markets Act, with further guidelines promised for stablecoins and staking providers.

CoinDesk reached out to the Treasury for comment.