The U.K. government is poised to introduce groundbreaking legislation for the cryptocurrency sector, including stablecoins and crypto-related services such as staking, exchange, and custody. Announced by Economic Secretary Bim Afolami at the Innovate Finance Global Summit, this move aims to integrate a wide range of crypto asset activities into the regulatory framework for the first time by mid-2023. This strategic push aligns with the Conservative Party’s vision to establish the U.K. as a global hub for cryptocurrency, enhancing its economic landscape.

Previously in 2023, a significant financial markets bill was passed, setting the groundwork for stablecoins and other cryptocurrencies to be recognized as regulated financial activities. Both the Financial Conduct Authority and the Bank of England have been actively shaping the regulatory environment, ensuring robust oversight. With the upcoming election that might shift the political landscape, the current government is swiftly advancing its crypto regulatory agenda to cement its pioneering role in the crypto economy before any potential changes in leadership.

Bloomberg