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The UK government is set to introduce new crypto regulations this month, aiming to keep startups from being lured by Donald Trump’s pro-crypto policies in the US. The Treasury is preparing legislation focused on stablecoins and staking, to offer a clearer framework that could enhance the UK’s appeal as a digital asset hub. Industry insiders, however, have been concerned by the UK’s slow regulatory progress, especially as the EU has already made strides with its Markets in Cryptoassets regulation.
New Policies At Glance
As per the Bloomberg report, to counter the US’s growing crypto appeal, the UK Treasury is focused on stablecoin legislation. Two new bills will provide clarity for stablecoin providers, addressing regulatory gaps and ensuring the country remains attractive to crypto businesses. This legislation could include exemptions for services like staking and custodial wallets, offering businesses a stable framework for growth.
In the meanwhile, the UK is also advancing broader regulatory efforts through the Property Bill, which safeguards the ownership rights of digital assets like cryptocurrencies, NFTs, and even carbon credits. By legally recognizing these assets as personal property, the UK aims to enhance investor protections and address issues like fraud and ownership disputes.
Trump’s Impact on Global Crypto Investment
Moreover, Trump’s win has shifted investor focus toward the US, which is seen as a safe haven for digital assets. His pro-crypto vision, including potential moves like designating Bitcoin as a strategic reserve, could further attract global investment and trigger a worldwide FOMO (fear of missing out), possibly pushing other countries to follow suit.
In response, the UK’s regulatory moves aim to reassure crypto businesses, offering a balanced approach between investor protection and market growth, ensuring it stays competitive on the global stage.
Crypto Reaction
The UK crypto market is showing resilience in 2024, with 18% of consumers still holding crypto, the same as in 2022. Sell-offs have been lower than in other countries, and a strong 59% of UK crypto owners are comfortable investing at least 5% of their portfolios in digital assets, surpassing the global average. Plus, many former UK crypto holders are ready to re-enter, with 77% planning to buy again within the next year, reflecting steady confidence in crypto as a long-term investment.
Will other countries follow the Trump-led crypto policies, we will come to know?