The UK government appears to be considering an ambitious six-month timeline to implement new regulations governing stablecoins and staking services for cryptoassets.
The UK government appears to be considering an ambitious six-month timeline to implement new regulations governing stablecoins and staking services for cryptoassets.
This initiative comes as the nation braces for a forthcoming general election, with lawmakers feeling the heat to deliver concrete proposals.
Economic Secretary to the Treasury Bim Afolami, during an industry event in London, emphasized the government’s dedication to this cause.
“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 development follows the Treasury’s pledge last October to offer greater clarity on specific crypto areas by 2024. The move is seen as a response to a previous consultation on fiat-backed stablecoins and the enactment of the broader Financial Services and Markets Act.
Elliptic anticipates these new rules would bring fiat-backed stablecoins and their issuers under existing payment laws. This would then grant the UK’s financial regulator the authority to determine the types of assets backing a stablecoin.
In a January 2024 report, Elliptic said:
“In the UK, the Bank of England will continue to progress work around addressing the risks of systemic payment stablecoins that could have wider implications for financial markets given their size and scale.”
Meanwhile, the UK’s Financial Conduct Authority (FCA) has been ramping up its oversight of cryptocurrency firms. In the final quarter of 2023 alone, the FCA issued 450 consumer warnings against crypto firms for advertising violations.
