Based on a recent report, the UK government has disclosed aims to enact legislation governing stablecoins and staking services within the next 6 months. Speaking at a Coinbase event in London, Economic Secretary Bim Afolami stated the government is pushing hard to deliver its rules soon.
According to the report, the Treasury first pledged in October 2022 to provide regulatory clarity on crypto by 2024. This followed a consultation on fiat-backed stablecoins and the passage of the Financial Services and Markets Act. Market observers expect fiat-backed stablecoins and issuers to fall under existing payment regulations.
This would empower the UK’s financial regulator to dictate what assets can support a stablecoin. Staking is expected to get a new classification, avoiding the label of a collective investment, said Coinbase’s Tom Duff Gordon. Broader legislation bringing crypto firms under financial services rules has no timeline.
Prime Minister Rishi Sunak sought to make the UK a crypto hub in 2022. However, the industry says regulatory uncertainty has hindered operations. Afolami said he could not commit to a timeline on wider crypto rules beyond stablecoins and staking.
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