- The UK government will announce its plan to regulate the crypto industry.
- The UK treasury plans to focus on stablecoins and staking services.
The UK government is to unveil its plans for cryptocurrency regulation in response to the fast-evolving industry. Following the victory of Donald Trump in the US presidential election, hailed by the crypto space, the UK faces increased pressure to provide clarity and supportive regulations for digital assets.
The UK Treasury is planning to address two areas of legislation in the cryptocurrency sector, stablecoins and staking services. The government’s focus on stablecoins will enable the Financial Conduct Authority (FCA) to review the industry rules for these tokens.
Meanwhile, staking allows investors to lock tokens for rewards to support blockchain networks. The legislation aims to reclassify staking to avoid rigid regulations meant for collective investment schemes.
On the other side, the UK’s digital securities sandbox, a joint initiative run by the Bank of England and FCA, is another area of focus. This live environment allows blockchain and crypto projects to test their ideas under regulatory supervision. This sandbox, with the upcoming regulations, will provide clarity to crypto companies in the UK and strengthen the country’s position in digital finance.
Besides, the FCA is scheduled to release a roadmap, that details its phased approach towards regulating stablecoins and other crypto assets. Also, the FCA will likely publish a consultation paper on stablecoins in early 2025.
Laura Navaratnam, UK policy lead at the Crypto Council for Innovation, underlined the importance of quick action, that the UK has a second-mover advantage, but must mobilize to capitalize on this opportunity.
The Impact of Trump’s Victory
Donald Trump’s win has had an impact on the crypto market, with the largest asset, Bitcoin surging past $93K. Other major assets have also climbed to new highs. Trump has pledged to establish a government-backed Bitcoin reserve, replace the SEC Chairman, and ensure all future Bitcoin mining happens on US soil.
Moreover, many crypto investors were optimistic about Trump’s alliance with Elon Musk. On election night, the dog-themed, Musk-preferred meme coin, Dogecoin surged by around 25%.
Highlighting Crypto News
