UK To Set New Regulations On Crypto Staking And Stablecoins

The United Kingdom authorities are now in preparation to state new regulations on stablecoins and crypto staking services. The new regulations are expected to be released in the next six months. At this stage, the pressure grows on the cabinet to submit proposals because of the upcoming general elections. 

At an industry event hosted by Coinbase London, Bim Afolami, Economic Secretary to the Treasury stated that the UK government is very keen on finishing the legislation. He highlighted the government’s efforts to advance the legislative initiatives. He stated: 

“We’re very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable”.

In October last year, the Treasury promised to offer better regulations on certain aspects of crypto within this year. However, its promise followed another consultation on fiat-backed stablecoins and the passage of a wider Financial Services and Markets Act in the summer. 

Meanwhile, market analysts such as Elliptic, think that the fiat-backed stablecoins and their issuers will come under regulation through existing payment laws. This approach could authorize the UK’s financial advisors to identify the types of assets allowed in supporting stablecoins. 

On crypto staking, Tom Duff Gordon, Vice President for International Policy at Coibase, stated in an interview that it is expected to receive a fresh classification to avoid being labeled as a collective investment. 

Moreover, the proposals on crypto exchanges and other industry players to existing financial services regulations are still pending. Apparently, Ben Afolami didn’t provide a definite answer as to when is the potential timeline for the regulations to be legislated.