What to expect when UK, long-term US ally, announces details of crypto regulation
The post What to expect when UK, long-term US ally, announces details of crypto regulation appeared on BitcoinEthereumNews.com.
The UK is set to announce a crypto regulatory framework that it expects to encourage growth and financial stability. The framework will have two legislations, one focused on stablecoins and the other to provide clarity for staking services. The UK’s push for the legislation follows a cascade of financial regulation milestones sparked by the US elections. The surge in the crypto market has also raised concerns that crypto startups in the UK might pivot to the US, where regulations are clearer or more accommodating. The UK’s convoluted path to crypto regulation Crypto regulation initiatives started under former prime minister Rishi Sunak’s leadership in 2022. His government planned to make the UK a global hub for crypto assets by focusing on key areas such as stablecoins and clarifying which activities should fall under the Financial Conduct Authority (FCA). However, political changes delayed the regulatory timelines, which means the issue is now being revisited in 2024. The new legislation is expected to allow the FCA to engage with the crypto industry to develop robust and specific regulations. Also, staking will be reclassified as a tech service, rather than assets management, which would have been subject to more scrutiny. Although the UK treasury has yet to provide a specific timeline, the FCA is expected to release a regulatory roadmap sooner than later. The roadmap will include consulting on stablecoins in early 2025, followed by a phased approach to broader crypto regulations. Also, the UK government will update the industry on advancements in the digital securities sandbox, a joint initiative by the FCA and the Bank of England to support blockchain innovation. The lack of clear and swift legislation has led to justifiable hesitance among crypto firms on UK investments, especially as the EU’s comprehensive Markets in Crypto-Assets (MiCA) regulations are near full implementation.…
Filed under: News - @ November 15, 2024 1:26 am