Speaking at the Innovate Finance Global Summit (IFGS) 2024 on April 15, Afolami emphasized the regulatory regime’s far-reaching nature and said the change would bring a “whole host” of crypto activities within regulatory bounds.
The regime specifically addresses stablecoins and staking. The rules also allow companies to provide crypto exchange services and custody over customer crypto holdings.
The regulations have broader implications for the UK. Afolami called the UK’s regulatory regime for crypto a “cornerstone” in its position as a fintech world leader. He additionally said the UK is “committed to creating a regulatory environment” that allows innovation while protecting consumers.
The UK government plans to deliver legislation for its final proposals around the crypto regime in June or July, before the government’s summer recess.
Rules in progress since 2023
The UK finalized its approach to crypto regulation in October 2023. According to official documents, the rules address issues such as lending activities and market abuse in addition to the focus areas mentioned by Afolami.
The rules avoid banning crypto or treating unbacked crypto as a form of gambling rather than a regulated financial service.
Afolami previously discussed the timeline at a February event hosted by Coinbase. He said the government aims to advance legislation “soon as possible,” and the rules may be approved in the coming six months.
The UK government has separately considered the digital securities sandbox since November 2023. In April, it began a consultation period. The government will accept sandbox applicants starting in the summer, with the selection process slated to complete in the fall.
