According to Cointelegraph, the United Kingdom is set to unveil a draft regulatory framework for crypto assets early next year, as announced by a Treasury official at the City & Financial Global’s Tokenisation Summit in London on November 21. The anticipated regulations, initially expected last summer, were delayed due to a general election that resulted in a change of government. The Labour government, led by Keir Starmer since July 5, 2024, will now present the new regulations.
Economic Secretary to the Treasury, Tulip Siddiq, stated that the upcoming regulations will encompass stablecoins, staking services, and cryptocurrencies. Siddiq emphasized the simplicity and logic of addressing all aspects in a single phase. She noted that stablecoins do not align well with existing payment services regulations, and while legislation for stablecoins has been under discussion since October 2023, it was not anticipated before 2025. The crypto industry is particularly interested in ensuring that staking services are not classified as a "collective investment scheme," which would impose additional restrictions. Siddiq assured that the government intends to eliminate this legal ambiguity.
The previous Conservative government had aimed to position the UK as a cryptocurrency hub, but the country has often been perceived as having a challenging regulatory environment. This perception is frequently attributed to the Financial Conduct Authority, an independent regulatory body. Meanwhile, the European Union's Markets in Crypto-Assets (MiCA) regulation is set to be fully implemented by the end of the year, providing regulatory clarity across the continent. In contrast, the UK appears less appealing to the crypto industry, especially with the United States' previous administration being seen as supportive of cryptocurrency. The former UK government had pledged new crypto regulations by July, but this was not realized. The Labour government's sole effort in crypto regulation so far has been a bill proposed in September to clarify the legal status of non-fungible tokens (NFTs), cryptocurrencies, and carbon credits by recognizing them as property.