The United Kingdom (U.K.) plans to share a legislative framework to regulate the cryptocurrency industry early next year, as the U.K. attempts to keep up with crypto advancements in the U.S. and Europe.
Tulip Siddiq, Economic Secretary to the Treasury shared on Thursday that regulations pertaining to stablecoins or cryptocurrencies linked to the value of stable assets like the U.S. dollar along with staking services will be a part of a single comprehensive framework for crypto assets.
“Doing everything in a single phase is simpler and it just makes more sense. Under the new government’s plans, stablecoins would no longer be considered under the UK’s existing payments services regulation because that would not appropriate based on their current use cases.”
The U.K. is attempting to stall the attraction of Donald Trump’s administration to cryptocurrency companies globally with the president-elect vocal with his support for the industry.
With the European Union’s comprehensive Markets in Crypto Assets (MiCA) law already in motion, the lack of progress on legislation has made cryptocurrency companies hesitant to invest in the U.K.
Currently, the E.U.’s rules on stablecoins are already in effect and the rest of the regulation will kick in by the end of the year. These include the potential for crypto-asset service providers licensed in one E.U. member state to conduct business throughout the group of 27 E.U. countries.