- The UK is aiming to approve new stablecoin and staking regulations within the next six months.
- This follows the HMT’s October pledge to provide a clearer set of crypto regulations.
- Bim Afolami, Economic Secretary to the HMT, has not planned a timeline for the next phase of crypto regulations in the nation.
The UK government aims to fast-track the approval of new regulations governing stablecoins and staking services for crypto assets within the next six months.
During an event hosted by renowned exchange Coinbase in London, Economic Secretary to His Majesty’s Treasury (HMT), Bim Afolami, expressed the government’s urgency to deliver these regulations swiftly, stating, “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.”
This push for legislation follows the HMT’s October 2023 pledge to provide more clarity on specific areas of the crypto industry by 2024. The initial commitment included a consultation on fiat-backed stablecoins.
Notably, the proposed regulations are expected to classify fiat-backed stablecoins and their issuers under existing payments law—a statutory instrument (SI). Moreover, it will be integrated into the Financial Services and Markets Bill, a parliamentary process currently underway.
Moreover, Elliptic expects that the upcoming regulation will lead to amendments to the Electronic Money Regulations (EMRs) and Payment Services Regulations 2017 (PSRs) when these stablecoins are utilized for retail payments.
Prime Minister Rishi Sunak had previously revealed the government’s broader vision to make the UK a digital asset hub. As per the consultation published by HMT, the next stage would set the course for more comprehensive crypto asset regulation.
While the government is making progress on stablecoins and staking, broader regulatory proposals to bring digital asset exchanges and service providers under existing financial services rules are yet to be finalized.
Afolami, when questioned about a timeline for these broader regulations, couldn’t commit, stating, “There’s just a huge amount going on, so I don’t want to commit to that now.”
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