The UK government has announced ambitious plans to implement a unified regulatory framework for the cryptocurrency sector by early 2025. During the City & Financial Global Tokenisation Summit in London, Economic Secretary of Finance Tulip Siddiq presented the new approach on behalf of the Labor government. The aim is to combine stablecoin regulations and staking services into one modern and efficient regime.
Stablecoins: new rules for a changing landscape
Current UK legislation for payment services is no longer considered appropriate by the government for stablecoins. These digital currencies, often linked to traditional assets such as the US dollar, require a tailor-made approach, according to Siddiq. The new framework must better reflect their growing role in the global economy.
Reforms in strike services
Staking services, where users stake crypto tokens to support blockchain networks and earn rewards, are also central to the reform. The government wants to remove legal uncertainties and treat strikes as a technological service, not as a collective investment scheme. This prevents stricter financial regulations that would hinder innovation.
“By implementing these reforms in one phase, we simplify the process and provide greater clarity to the industry,” Siddiq said.
New focus after elections
Although the previous Conservative government had already planned to introduce legislation, the general election in July 2024 caused a delay. Following Labour’s landslide election victory, the new government is now tackling the regulatory process with full force.
UK competes with the EU and US
Innokenty Isers, founder of crypto platform Paybis, emphasized the strategic importance of this step. He pointed to the EU, which has already introduced functional crypto legislation with its Markets in Crypto-Assets (MiCA). The US under the leadership of re-elected President Donald Trump is also taking measures to attract crypto companies.
“If the UK does not keep up with its competitors, it risks missing important opportunities in the fast-growing crypto sector,” Isers warned.
Global competition in crypto regulation is accelerating. The EU will implement MiCA by the end of the year, while the US plans to attract startups and promote investment.
Innovation and economic growth
The UK government is expected to publish draft regulations in 2024 that will serve as the basis for the comprehensive crypto framework. “This is a strategic move to stimulate innovation and gain a competitive advantage,” said Isers.
With these reforms, the UK aims to position itself as a leading player in the international financial sector. The plans reflect a clear focus on technological advancement and economic growth, as other jurisdictions continue to develop their own crypto regulations.
Source: https://newsbit.nl/vk-introduceert-in-2025-nieuw-cryptoregulatiekader-een-strategische-zet-voor-innovatie-en-groei/
