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The UK government is all set to formulate new rules surrounding stablecoins and their staking services for other crypto assets.  When will new regulations be implemented? The lawmakers are expected to approve the new rules in the next six months, around the middle of 2024. The lawmakers are asked to approve the rules or at least make a decision before the impending general elections. The regulations will set up a stage for the elections for all the crypto enthusiasts and businesses involved in crypto-related activities. Bim Afolami, Economic Secretary to the Treasury, addressed an industry event organized by Coinbase in London on Monday, February 19. There, he stated that the government was pushing very hard on the lawmakers to formulate the regulations, which are getting implemented. Afolami stated, “We’re very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable.”  What is the background for the new set of rules in the UK? In October 2023, the Treasury clarified that they would explain rules on specific areas of crypto at some point in 2024. This commitment to update follows an earlier consultation on fiat-backed stablecoins. The previous event was the passing of the larger Financial Services and Markets Act during the summer of 2023. Implementing stricter rules aims to control market abuse around crypto-asset issuance and disclosures. Stablecoins are digital tokens that use reserves of assets to maintain a one-to-one value with a traditional fiat currency such as the dollar or pound. What are the viewpoints of other industry analysts? Blockchain analytics firm Elliptic, the market observer, has stated that they expect to see fiat-backed stablecoins and their issuers regulated under existing payment laws. This move would allow the UK’s financial regulator to dictate the…

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Filed under: News - @ February 20, 2024 7:24 pm