UK to Issue New Crypto, Stablecoin Legislation by July, Minister Says

The U.K. government plans to introduce laws for stablecoins and related activities such as staking, trading, and custody by June or July, according to Economic Secretary Bim Afolami during the Innovate Finance Global Summit on Monday.

Afolami stated that we are actively advancing efforts to pass the legislation and implement our proposed regulations for crypto assets. Once enacted, various crypto-related activities such as operating an exchange, holding customer assets, and others will fall under regulatory oversight for the very first time.

In 2023, the U.K. introduced a significant financial markets law, paving the way for stablecoins and cryptocurrencies to be recognized as regulated financial activities within the country. The Financial Conduct Authority (FCA) and the Bank of England (BoE), the local regulatory bodies, held consultations in February 2023 on the proposed framework for stablecoins. The BoE announced its intention to supervise stablecoin providers that could potentially impact the financial system, while the FCA stated its plan to regulate the broader crypto market.

Afolami hinted at the impending release of new regulations for stablecoins as early as February. He further mentioned that the government was actively working to finalize these laws within a six-month timeframe.

The British government, led by the Conservative Party, has expressed its intention to make the U.K. a significant player in the cryptocurrency sector. To achieve this, they have been consulting on regulations to govern crypto use. However, an upcoming election in the U.K. this year might result in a change of power, potentially halting the Conservative Party’s plans and leaving them with limited time to act. The Labour Party currently holds the lead in polling.

Read more: UK’s Planned Stablecoin Rules Need Reworking, Crypto Advocates Say