The UK will formulate regulatory rules for cryptocurrency activities such as stablecoins, staking, and custody.

UK Chancellor of the Exchequer Bim Afolami said the country is working on crypto regulation legislation that would allow for a number of activities.

Speaking at the Innovate Finance Global Summit (IFGS) on April 15, 2024, Afolami stressed the far-reaching nature of the regulatory regime, saying the change will bring “a vast array” of cryptocurrency activity under the purview of regulation.

The regulatory regime specifically targets stablecoins and staking, and the rules also allow companies to provide cryptocurrency trading services and custody of customers’ crypto assets.

The rules have a more far-reaching impact on the U.K. Afolami called the U.K.’s cryptocurrency regulatory regime a “cornerstone” of its position as a world leader in fintech. He also said the U.K. is committed to creating a regulatory environment that allows for innovation while protecting consumer interests.

The UK government plans to legislate on its final proposals for a cryptocurrency regime before the government’s summer recess in June or July.

Rules from 2023

The United Kingdom finalized its approach to cryptocurrency regulation in October 2023. According to the official document, in addition to the focus areas mentioned by Afolami, the rules also address issues such as lending activities and market abuse.

The rules avoid banning cryptocurrencies or treating unsecured cryptocurrencies as gambling rather than regulated financial services.

Afolami, who discussed the timeline at a February event hosted by Coinbase, said the administration’s goal is to move the legislation forward as quickly as possible, predicting the rules could be approved within the next six months.

The UK government has been considering a digital securities sandbox separately since November 2023. The consultation period began in April. The government will begin accepting sandbox applicants in the summer, and the selection process is scheduled to be completed in the autumn. #英国  #加密立法规范