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The United Kingdom Treasury plans to introduce a regulatory framework for cryptocurrencies and stablecoins by July 2024. The goal is to foster local innovation in digital assets and blockchain technology while ensuring consumer protection and maintaining the U.K.’s position as a global leader in fintech.
Bim Afolami, the U.K.’s economic secretary to the Treasury, emphasized the importance of crypto regulations during his speech at the Innovate Finance Global Summit (IFGS) 2024:
Speaking of true change, I know that the cornerstone of our position as a world leader in fintech is the delivery of our regulatory regime for crypto assets and stablecoins.
The Treasury is currently working on final proposals that address stablecoins and crypto staking, with plans to deliver them by June or July. Afolami explained:
Once it goes live, a whole host of crypto asset activities, including operating in exchange, taking custody of customer assets and other things, will come within the regulator perimeter for the first time.
Afolami also announced the creation of an open finance task force during the conference, which will provide recommendations and identify necessary data sets and commercial incentives to advance the SME lending use case for open finance.
UK aims to regulate crypto
In related news, starting April 26, U.K. authorities will have the power to directly seize crypto assets from exchanges and custodian wallet providers suspected of being linked to illicit activities, without extensive legal procedures. This is due to amendments made to the Economic Crime and Corporate Transparency Act 2023, which expands the National Crime Agency’s authority.
The news follows the Hong Kong Securities and Futures Commission (SFC) recently giving the green light to the first spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the region. Still, not all of the current regulatory attention to crypto is positive, with the European Securities and Markets Authority (ESMA) issuing a warning about the high concentration of trading activity on a limited number of cryptocurrency exchanges.
