The United Kingdom is aiming to pass new laws regulating stablecoins and crypto staking within the next six months.
Speaking at a Coinbase-hosted crypto event in London on Feb. 19, Economic Secretary to the Treasury Bim Afolami said the government was working hard to ensure the new legislation was passed ahead of this year’s general election, Bloomberg reported.
“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.”
Afolami remained tight-lipped when pressed for more specific details concerning the long-awaited crypto regulation.
‘“Short answer is, I don’t know [...] There’s just a huge amount going on, so I don’t want to commit to that now,” he said.
Back in 2022, U.K. Prime Minister Rishi Sunak pledged to establish the country as a “global crypto hub,” highlighting the need for crypto firms to be able to “invest, innovate and scale up” in the United Kingdom.
Since then, little meaningful progress has been made on regulation in the country, despite many cries for more concise rules from crypto firms operating on U.K. soil.
On July 3, 2023, the U.K. Law Commission published four major recommendations to reform domestic laws on crypto use and ownership.
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The commission pushed for the creation of a new distinct category of personal property to accommodate for and protect the unique features offered by digital assets.
Alongside this push came a recommendation for the government to carry out a common law analysis of crypto assets, as well as establish an industry-specific panel of technical experts, academics and legal practitioners to advise courts on crypto-related legal issues.
On Oct. 30, 2023, the U.K. government said it would aim to introduce more crypto-specific regulation during 2024 and see the regulation of fiat-backed stablecoins brought under the purview of the Financial Conduct Authority (FCA).
The U.K. is getting ready for its general election, widely expected to be called sometime in the second half of 2024. The country’s Labour Party, expected to be less sympathetic to crypto, is leading in the early-stage polls.
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