A Date Has Been Given for New Cryptocurrency Laws That Will Change the Balances in the UK

The UK government has announced plans to introduce a unified regulatory framework for cryptocurrencies and stablecoins in early 2025.

The announcement was made at the City & Financial Global Tokenisation Summit in London, where Economic Secretary to the Treasury Tulip Siddiq outlined the Labor government’s streamlined approach to crypto custody.

The framework aims to unify regulations for stablecoin and staking services into a single regime, simplify oversight and address legal uncertainties in the rapidly evolving sector.

The planned legislation was initially anticipated under the previous Conservative government but was postponed due to the UK’s general election in July. After a landslide victory, the Labor government is now looking to accelerate crypto regulations.

“It’s simpler and more logical to do everything in one step,” Siddiq said.

The proposed regulations would remove stablecoins from the UK’s current payment services rules, which the government deems unsuitable for their current practices. Instead, the framework will align with the evolving uses of stablecoins, particularly their role in preserving value by being pegged to assets such as the US dollar.

The new framework also addresses concerns about the classification of staking, a process where users lock up tokens to support blockchain networks in exchange for rewards. Industry leaders have lobbied for staking to be recognized as a technology service rather than a collective investment scheme, which would subject it to stricter financial regulations. Siddiq signaled that he supports the government’s stance, saying, “It does not make sense for staking services to be subjected to this treatment, and the government intends to continue to eliminate this legal uncertainty.”

The move has been welcomed by industry leaders, who see it as a step towards aligning the UK with global crypto standards. Paybis founder Innokenty Isers praised the government’s efforts and noted their importance in keeping the UK competitive.

*This is not investment advice.