Key Takeaways
- The U.K. is set to enforce new legislative rules for crypto, stablecoins, and staking services.
- The new regulations were delayed due to the change in government.
- The U.K. is looking to introduce a framework to attract more crypto businesses.
The U.K. is gearing up to announce a new comprehensive regulatory framework for crypto, particularly for stablecoins.
The new rules are expected to mark a major shift in the country’s approach to crypto, as it aims to consolidate regulations into a single regime.
The U.K.’s New Crypto Rules
On Thursday, Nov. 21, Economic Secretary Tulip Siddiq announced that the “simpler” crypto framework will be coming in a matter of months, Bloomberg reported.
The new regulations, originally slated for December, were delayed due to the change in government.
Siddiq said the new regulations would focus on crypto, stablecoins, and staking services.
“Doing everything in a single phase is simpler, and it just makes more sense,” Siddiq said.
Siddiq said stablecoins do not fit into the current payment services regulation.
“Stablecoins will receive distinct treatment under these regulations, as their functionality does not align with existing payment services rules,” Siddiq said.
The Economic Secretary also said staking services would not be classed as “collective investment schemes,” marking a win for the crypto industry as this could impose tight restrictions.
“For me, it doesn’t make sense for staking services to have this treatment,” Siddiq said. “The government intends to proceed with removing this legal uncertainty accordingly.”
Focus on Regulation
The move comes as Britain looks to play catch up with crypto legislation in the country, looking to appeal to crypto businesses who have been hesitant to invest in the U.K.
The U.K.’s lack of legislation has been extenuated by President-elect Donald Trump’s pro-crypto promises.
The legislation also comes as the EU’s Markets in Crypto-Assets (MiCA) regulation comes into force by the end of the year.
MiCA aims to emphasize consumer protection by imposing requirements for risk disclosures, safeguarding funds, and mitigating cybersecurity threats.
Stablecoins, in particular, face stringent oversight to ensure they maintain adequate reserves and are stable enough to support widespread use.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
