Kingdom

Stablecoin

United

Summit

A draft regulatory framework for crypto assets will be ready in the United Kingdom early next year, a Treasury official promised at City &amp; Financial Global’s Tokenisation Summit in London on Nov. 21.
Some regulations were expected months earlier, but a general election overturned those plans along with the Conservative government of Prime Minister Rishi Sunak. Keir Starmer’s Labour government, which took office on July 5, will present the regulations.
<h2 id="a-comprehensive-framework">A comprehensive framework</h2>
Economic Secretary to the Treasury&nbsp;Tulip Siddiq&nbsp;said the regulations would cover stablecoins and staking services, as well as cryptocurrency, Bloomberg <a data-ct-non-breakable="null" href="https://www.bloomberg.com/news/articles/2024-11-21/uk-to-unveil-long-awaited-crypto-stablecoin-rules-early-in-2025" rel="null" target="null" text="null" title="null">reported</a>. Siddiq said:
<blockquote>
 “Doing everything in a single phase is simpler and it just makes more sense.”
</blockquote>
Stablecoin’s use cases do not make it a good fit for existing payment services regulation, Siddiq said. Stablecoin legislation <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/uk-stablecoin-regulation-begins-to-take-shape-in-multiple-fca-boe-documents" rel="null" target="null" text="null" title="null">has been in the works</a> since the release of a suite of discussion papers in October 2023 but was never expected earlier than 2025.
The crypto industry would prefer that staking not be designated as a “collective investment scheme,” as that would bring with it additional restrictions. Siddiq said at the summit:
<blockquote>
 “For me, it doesn’t make sense for staking services to have this treatment. The government intends to proceed with removing this legal uncertainty accordingly.”
</blockquote>
<h2 id="the-uk-needs-to-get-a-grip-on-crypto">The UK needs to get a grip on crypto</h2>
The former Conservative government expressed the ambition to <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/uk-politics-cryptocurrencies-elections-regulations-industry-impact" rel="null" target="null" text="null" title="null">make the United Kingdom a cryptocurrency hub</a>, but it has been seen as a challenging regulatory environment. Blame for that perception <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/uk-finance-regulator-fca-crypto-industry" rel="null" target="null" text="null" title="null">is often placed on</a> the Financial Conduct Authority, a regulator independent of the government.
<figure>
 <img alt="UK to deliver comprehensive crypto regulation framework by early 2025" src="https://s3.cointelegraph.com/uploads/2024-11/0193505b-e1c2-7e63-8230-9e4ec33dc66f" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/TulipSiddiq/status/1858622792016818387" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/TulipSiddiq/status/1858622792016818387">Tulip Siddiq</a>
 </figcaption>
</figure>
Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) regulation will come into full force by the end of the year. With the continent offering regulatory certainty and the United States’ forthcoming President-elect Donald Trump administration being viewed as pro-crypto, the UK <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-regulation-uk-not-clear-shift-europe-mica" rel="null" target="null" text="null" title="null">looks less</a> attractive to the multibillion-dollar crypto industry.
The former government had <a data-ct-non-breakable="null" href="v" rel="null" target="null" text="null" title="null">promised new crypto regulations</a> in July, but that did not occur. So far, the Labour government’s only attempt at crypto regulation has been a bill proposed in September to clarify the legal status of non-fungible tokens (NFTs), cryptocurrency and carbon credits <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/uk-bill-cryptocurrency-legal-status" rel="null" target="null" text="null" title="null">by declaring them property</a>.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/crypto-four-years-grow-cant-be-shut-down-kain-warwick-infinex/" rel="null" target="null" text="null" title="null">Crypto has 4 years to grow so big ‘no one can shut it down’: Kain Warwick, Infinex</a>
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UK to deliver comprehensive crypto regulation framework by early 2025

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Cointelegraph

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