U.K. to Unveil Crypto, Stablecoin Regulations Early Next Year

The U.K. government is set to release draft regulations for the cryptocurrency and stablecoin markets in early 2025, as reported by Bloomberg. Prime Minister Keir Starmer’s administration aims to create a comprehensive regulatory framework for the crypto industry, aligning with global efforts seen in both the European Union and the United States.

Tulip Siddiq, Secretary to the Treasury, confirmed the plans during a meeting in London. The proposed regulatory framework will cover stablecoins and crypto staking services, streamlining the oversight of crypto assets under a unified set of rules.

Initially, the U.K. had planned to unveil these regulations by December 2024. However, the timeline was adjusted after the change in government leadership. The government now intends to launch a single overarching regulatory regime, as opposed to separate drafts for stablecoins and crypto staking.

In addition to observing developments within the U.K., regulators are also watching the European Union’s Markets in Crypto-Assets (MiCA) framework, which is set to go into effect later this year. This regulatory development in the EU is expected to influence the U.K.’s approach.

The Bank of England first introduced its stablecoin regulatory plan in November of the previous year, signaling the government’s intention to create a more structured and secure environment for the crypto market.

The U.K.’s decision to delay and revise its approach to crypto regulations comes at a time when pro-crypto developments are accelerating in other parts of the world, particularly in the U.S., where the recent election of Donald Trump has led to discussions around a new “crypto czar” in the White House and SEC Chair Gary Gensler’s upcoming resignation.