The UK government has announced plans to introduce a unified regulatory framework for cryptocurrencies and stablecoins in early 2025.
The announcement was made at the City & Financial Global Tokenisation Summit in London, where Treasury Economic Secretary Tulip Siddiq outlined the Labour government’s streamlined approach to crypto surveillance.
The framework aims to unify regulations for stablecoins and staking services into a single regime, simplify the oversight process, and address legal uncertainties in the rapidly evolving sector.
The planned legislation was initially expected under the previous Conservative government but was delayed due to the UK general election in July. After a landslide victory, the Labour government is now looking to fast-track crypto regulations.
“It’s simpler and more logical to do everything in one step,” Siddiq said.
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The proposed regulations would remove stablecoins from the UK’s existing payment services rules, which the government deems unsuitable for its current applications. Instead, the framework would align with stablecoins’ evolving use cases, particularly their role in maintaining value by being pegged to assets such as the US dollar.
The new framework also addresses concerns about the classification of staking, a process where users lock up tokens to support blockchain networks in exchange for rewards. Industry leaders have lobbied for staking to be recognized as a technology service rather than a collective investment scheme, which would subject it to stricter financial regulation. “It makes no sense for staking services to be treated this way, and the government intends to continue to remove this legal uncertainty,” Siddiq said, signaling support for the government’s stance.
The move has been welcomed by industry leaders who see it as a step towards bringing the UK into line with global crypto standards. Paybis founder Innokenty Isers praised the government’s efforts and highlighted their importance in keeping the UK competitive.
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/date-revealed-for-new-cryptocurrency-laws-reform-in-the-uk/