The United Kingdom aims to establish a comprehensive regulatory framework for the cryptocurrency industry by early 2025, as reported by CoinDesk.
“We intend to engage companies in drafting legal provisions for the cryptocurrency asset regime, including stablecoins, as early as next year,” stated Economic Secretary Tulip Siddiq at the City & Financial Global tokenization summit.
The Labour government, which came to power in July, plans to fully implement the previous administration’s strategies regarding digital asset regulation, she explained.
Under the Conservatives, the Financial Services and Markets Act defined regulators’ powers to develop the industry’s framework and introduced a series of regulatory requirements for the sector.
According to Siddiq’s outlined plans, authorities will introduce new rules for stablecoins concerning their use as a means of payment and maintaining their peg to fiat currencies.
Legal uncertainty regarding the classification of staking will also be addressed. Such operations will not be considered collective investment schemes.
Previously, former Prime Minister Rishi Sunak sought to transform the country into a global crypto hub to support financial innovation.