Crypto Staking, Trading, and Custody to Be Governed
The United Kingdom is set to implement new laws for cryptocurrencies, including stablecoins, staking, trading, and custody. These regulations are expected to be in place by mid-2024.
Financial Services Act Approval
The Financial Services and Markets Act, passed in June 2023, paved the way for cryptocurrencies to be recognized as regulated financial activities.
Government’s Commitment
Economic Secretary Bim Afolami has emphasized the government’s priority to address crypto-related issues swiftly. The aim is to finalize proposals for a new regulatory framework within the next six months.
FCA’s Role
The Financial Conduct Authority (FCA) will launch a consultation on an authorization regime for digital asset companies. The government will also establish equivalence measures for overseas firms.
Balancing Innovation and Protection
The UK government recognizes the importance of balancing innovation with investor protection. The new regulations will aim to provide a clear framework while fostering growth in the crypto industry.
Challenges Faced by UK Industry
Despite the government’s efforts, the UK crypto industry has faced challenges, including delays and concerns over the FCA’s feedback. New rules on digital asset advertising have also impacted some firms.
Conclusion
The upcoming legislation on stablecoins and crypto activities demonstrates the UK government’s commitment to creating a regulated and supervised crypto industry. While the details of the new regulations are yet to be announced, it is clear that crypto assets will operate within a more defined regulatory environment in the near future.
