UK Set to Introduce Long-Awaited Crypto Regulations Next Year

The UK is set to unveil a new regulatory framework for cryptocurrency assets early next year, according to a Treasury official.

This follows delays that pushed back earlier plans for crypto regulations, which were initially expected by last summer but were sidelined by the general election and the change in government. With the Labour Party now in power under Keir Starmer, the long-awaited regulations are slated for release in 2025.

The upcoming regulations are expected to address a range of topics, including stablecoins, staking services, and cryptocurrencies themselves. Economic Secretary Tulip Siddiq explained that consolidating these areas into one framework would simplify the process.

Notably, stablecoins, due to their unique use cases, will not fall under traditional payment services regulation. Siddiq also emphasized that the government aims to resolve uncertainties surrounding staking services, which crypto advocates hope will avoid being classified as “collective investment schemes,” which would impose extra restrictions.

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Despite previous efforts to position the UK as a crypto-friendly hub, the country’s regulatory environment has been seen as increasingly challenging, largely due to the independent role of the Financial Conduct Authority.

Meanwhile, the European Union’s MiCA regulation is set to be fully implemented by the end of the year, and with a more pro-crypto stance anticipated from the U.S. under the Trump administration, the UK risks losing its appeal to the global crypto industry. Additionally, the Labour government’s first move on crypto regulation, a bill aimed at clarifying the legal status of NFTs and crypto assets, was introduced in September.

Alexander Zdravkov