A draft regulatory framework for crypto assets will be finalized in the United Kingdom early next year, according to a statement from a Treasury official at City & Financial Global’s Tokenisation Summit in London on Nov. 21.
Initial plans to release regulations last summer were disrupted by a general election that brought an end to the Conservative government of former Prime Minister Rishi Sunak.
The Labour government, led by Prime Minister Keir Starmer since July 5, 2024, will now present the long-awaited regulations.
A comprehensive framework
Economic Secretary to the Treasury Tulip Siddiq announced that the regulations would address stablecoins, staking services, and cryptocurrencies.
“Doing everything in a single phase is simpler, and it just makes more sense,” Siddiq stated, according to Bloomberg.
Siddiq explained that stablecoins are not well-suited for existing payment services regulations, which necessitates tailored legislation.
While stablecoin laws have been under discussion since October 2023, they were never expected to materialize before 2025.
The crypto industry is also hopeful that staking services will avoid being classified as a “collective investment scheme,” which would impose stricter restrictions.
“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,” Siddiq added.
The UK’s crypto dilemma
The former Conservative government had aimed to position the UK as a cryptocurrency hub.
However, the country has often been seen as having a challenging regulatory environment, with the Financial Conduct Authority (FCA) frequently criticized for its stance.
Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) regulations are set to take full effect by the end of the year, providing regulatory clarity that contrasts with the UK’s delays.
Although Labour proposed a bill in September to define NFTs, cryptocurrencies, and carbon credits as property, substantial crypto regulation remains pending.
