According to PANews, Bim Afolami, the UK's Economic Minister, announced at the Global Summit on Innovative Finance on Monday that the UK government plans to introduce legislation on stablecoins and cryptocurrency collateral, trading, and custody in June or July. Afolami stated, 'We are now rushing to complete the legislation so that we can implement our final regulatory scheme.' Once the legislation takes effect, many cryptocurrency activities, including operating exchanges and custodianship of customer assets, will be regulated for the first time.
In 2023, the UK passed a milestone Financial Market Act, laying the foundation for stablecoins and cryptocurrencies to be considered regulated financial activities in the country. In February of last year, the UK's Financial Conduct Authority (FCA) and the Bank of England (BoE) consulted on the stablecoin regulatory system. The Bank of England stated that it would supervise stablecoin providers large enough to impact the financial system, while the Financial Conduct Authority said it would regulate a broader field of cryptocurrencies.
The Conservative-led government in the UK has expressed a desire to become a hub for cryptocurrency and has sought opinions on regulating cryptocurrencies. The UK is expected to hold general elections this year, and the Conservatives may lose, leaving some cryptocurrency plans in limbo. This means that the time for the Conservatives to execute their plans may be limited. Currently, the Labour Party is seen as the most likely to win the general election.