Home UK is aiming to regulate cryptocurrencies by July 2024

UK is aiming to regulate cryptocurrencies by July 2024

TL:DR

  • UK Treasury plans crypto regulatory framework by July 2024.
  • Focus on fostering innovation and ensuring consumer protection.
  • New regulations cover stablecoins, crypto staking, and more.

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.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Radek Zielinski
Tech Journalist

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.