UK to legislate on cryptoasset regulatory framework by end of July, minister says
Quick Take
- The UK’s Finance Minister announced that the government plans to legislate for a regulatory cryptoasset framework by the end of July.
- Prime Minister Rishi Sunak, when acting as the country’s finance minister, spoke about his aim to make the UK a global crypto hub.
UK Economic Secretary to The Treasury Bim Afolami said the government will legislate by the end of July on a regulatory framework for cryptoassets.
The timescale for the enactment of the legislation, that concerns the oversight of stablecoins, crypto staking, exchange and custody services, was delivered by Afolami at the Innovate Finance Global Summit on Monday.
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"We are now working at pace to deliver the legislation to put our final proposals for our regime in place," Afolami said. "Once it goes live, a whole host of crypto asset activities, including operating an exchange, taking custody of customers’ assets and other things, will come within the regulatory perimeter for the first time."
UK's timeline to develop crypto regulatory framework
In February, Afolami, the Member of Parliament for Hitchin and Harpenden, affirmed that the UK government aimed to complete secondary stablecoin legislation within six months.
In October 2023, the UK government published proposals that outlined its intention for regulating the crypto sector. They included a requirement that firms obtain authorization from the Financial Conduct Authority (FCA) to perform crypto-related activities.
October's proposals followed the UK Treasury’s consultation response in August that agreed on an arrangement that the Bank of England and the FCA would co-supervise systemic stablecoins.
Earlier in 2023, the UK passed the Financial Services and Markets Bill, establishing the groundwork for regulators to commence developing a framework for overseeing stablecoins and cryptocurrency financial activities within the country.
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