- By the end of July, the government intends to pass legislation creating a regulatory framework for cryptoassets.
- Prime Minister Rishi Sunak discussed his goal of turning the UK into a major hub for cryptocurrency worldwide.
Bim Afolami, the UK Economic Secretary to the Treasury, stated that legislation establishing a framework for regulating cryptoassets will be passed by the end of July.
Afolami announced the timeline for the legislation’s enactment at the Innovate Finance Global Summit on Monday. The legislation pertains to the supervision of stablecoins, cryptocurrency staking, exchange, and custody services.
According to Afolami, US is currently moving quickly to deliver the legislation needed to implement final plans for the regime. When it launches, a plethora of cryptocurrency-related operations, including running an exchange and managing clients’ holdings, will be covered by regulations for the first time.
Timeline for the UK to create a cryptocurrency regulatory system
The Member of Parliament for Hitchin and Harpenden, Afolami, stated in February that the UK government intended to finish secondary stablecoin legislation in six months.
The UK government released suggestions outlining its plans to regulate the cryptocurrency industry in October 2023. One of the requirements they included was for companies to seek permission from the Financial Conduct Authority (FCA) before engaging in any crypto-related operations.
The suggestions made in October came after the UK Treasury’s August consultation response, which settled on a plan for joint systemic stablecoin supervision by the FCA and the Bank of England.
The Financial Services and Markets Bill, which was enacted by the UK earlier in 2023, laid the foundation for authorities to start creating a framework for monitoring stablecoins and cryptocurrency financial activity in the nation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
