UK Aims For Crypto Regulation By July

The U.K. government is stepping on the gas to deliver its long-awaited crypto regulations, aiming to have legislation for stablecoins, crypto staking, exchanges and custody in place by June or July.

What Happened: Economic Secretary Bim Afolami announced this ambitious timeline at the Innovate Finance Global Summit, highlighting the government’s commitment to bringing these activities “within the regulatory perimeter for the first time,” Coindesk reported.

A Comprehensive Regulatory Framework On The Horizon

“We are now working at pace to deliver the legislation to put our final proposals for our regime in place,” Afolami announced.

He emphasized that the new regulations would bring crypto-related activities such as operating exchanges and managing custodial services into the regulatory fold for the first time.

This move is expected to enhance the security and reliability of engaging with cryptocurrencies within the UK.

In 2023, the UK passed a significant financial markets bill that began setting up the framework for treating stablecoins and broader crypto activities as regulated financial operations.

This foundational legislation was shaped following consultations in February with the Financial Conduct Authority (FCA) and the Bank of England (BoE).

The BoE has been tasked with overseeing stablecoin initiatives that could impact the financial system, while the FCA is set to regulate the expansive crypto market.

Also Read: Bitcoin’s Next Move: ‘More Likely’ To Hit Up To 75K On Short Liquidations, Analyst Says

Secondary Legislation And Political Implications

Adding to the legislative groundwork, Afolami hinted at upcoming secondary legislation specifically targeting stablecoins, expected to be finalized within six months from February.

This rapid development underscores the Conservative Party-led government’s resolve to capitalize on the evolving digital asset landscape.

However, the political overtones are equally palpable.

With an election anticipated this year, the existing crypto regulatory initiatives could face delays or revisions, especially if the Conservative Party does not secure re-election.

The Labour Party, currently leading in polls, could inherit a partially implemented crypto framework, introducing uncertainty about the continuity and specifics of the regulation.

What’s Next: This legislative push by the UK government will be a critical topic at Benzinga’s upcoming Future of Digital Assets conference on Nov. 19.

Stakeholders from around the world will be keen to discuss the implications of the UK's regulatory strategies on the global crypto market.

Read Next: Move Over Shiba Inu, Doge: OKX Lists Soaring Memecoins WIF And MEW

Photo: Shutterstock