UK moves to regulate crypto services such as staking, stablecoins
The post UK moves to regulate crypto services such as staking, stablecoins appeared on BitcoinEthereumNews.com.
A draft legislation published by the UK Treasury on April 29 revealed new rules for firms offering crypto services in the UK, such as stablecoins, staking, and custody. The rules, part of the government’s broader “Plan for Change,” are intended to bring crypto exchanges, dealers, and custodians under the Financial Conduct Authority’s (FCA) supervision, mirroring the standards applied to traditional financial services. Chancellor of the Exchequer Rachel Reeves said the regulatory changes aim to make “Britain the best place in the world to innovate.” She added that robust rules around crypto will boost investor confidence, support the growth, and protect UK investors. Expansion of regulatory perimeter According to the draft Financial Services and Markets Act 2000 (Amendment) Order 2025, firms engaging with crypto will require authorization to operate in or serve clients in the UK. The regulation will introduce a new “qualifying cryptoassets” category and establish clear definitions for “qualifying stablecoins,” distinguishing them from electronic money and tokenized deposits. These classifications ensure that crypto activities are subject to the same oversight as other specified investments under existing financial services legislation. The new activities that require authorization include issuing stablecoins, custody, operating trading platforms, dealing in crypto as principal or agent, arranging crypto transactions, and providing staking services. The policy note clarifies that using stablecoins for payments will not grant them regulation under the Payment Services Regulations, leaving future regulation open as adoption increases. The geographic scope of the new regulatory perimeter ensures that firms directly or indirectly engaging with UK consumers must obtain authorization, regardless of their location. Additionally, firms providing custody or staking services must also be authorized if they operate in the UK or on behalf of UK consumers. Stablecoin issuers must obtain authorization only if operating from an establishment within the United Kingdom. The Treasury notes that truly…
Filed under: News - @ April 29, 2025 9:27 pm