UK plans major crypto rules by early 2025
Government targets holistic regulation addressing stablecoins, staking, and future digital financial services
On Thursday, a Treasury official announced at the Tokenization Summit that the UK will introduce a draft crypto regulatory framework in early 2025.
While some of these regulations were expected last summer, plans were delayed due to general elections.
The former Conservative government had expressed ambitions to make the UK a crypto hub, but the country has faced a challenging regulatory landscape.
Since Keir Starmer's Labour government took office on July 5, progress on crypto regulations has accelerated. The UK is now working to catch up with developments in Europe and the US.
According to Bloomberg, Tulip Siddiq, the Economic Secretary to the Treasury, revealed that the regulations would address crypto, stablecoins, and staking services. Explaining the comprehensive approach, Siddiq mentioned that “doing everything in a single phase is simpler and it just makes more sense.”
Cointelegraph reported that stablecoin legislation has been in progress since the release of various discussion papers last October. However, it was not expected to arrive before 2025.
As for staking, the industry hopes it will avoid being labeled a “collective investment scheme,” a designation that could lead to additional restrictions. Siddiq stated, “for me, it doesn't make sense for staking services to have this treatment. The government intends to proceed with removing this legal uncertainty accordingly.”
While the UK moves toward a clearer regulatory framework, the EU is already ahead. Its Markets in Crypto-Assets (MiCA) regulation is set to be fully implemented by the end of this year, providing a comprehensive structure for stability and consumer protection across the region.
