The U.K. is gearing up to establish a comprehensive regulatory framework for the crypto industry in early 2025, as announced by economic secretary to the treasury Tulip Siddiq at the Tokenisation Summit in London on Thursday. This move, which was first reported by Bloomberg, will cover all aspects of the sector, including cryptocurrencies and stablecoins, which are digital assets pegged to a more stable asset like a fiat currency.
The industry had been hoping for exemptions for “staking” services, where investors lock their tokens to support a specific blockchain in exchange for a small yield, similar to earning interest on cash savings. However, Siddiq stated that there will be no special treatment for these services, stating, “It doesn’t make sense for staking services to be exempt from regulations. The government plans to address this legal uncertainty accordingly.”
In addition to this, the U.K. recently introduced a new bill that, if passed, would provide greater legal protections for crypto assets such as Bitcoin and NFTs. These assets would be designated as “personal property” under the proposed law. This move further solidifies the U.K.’s commitment to creating a favorable environment for the growth and adoption of cryptocurrencies.
With these developments, the U.K. is positioning itself as a leader in the crypto space, providing clarity and stability for investors and businesses alike. This regulatory framework, along with the proposed bill, will bring much-needed legal certainty and protection to the industry, paving the way for its continued growth and innovation. Stay tuned for more updates on the U.K.’s crypto regulations.