Key Insights
- The UK government plans to implement a unified cryptocurrency regulatory framework in early 2025, combining oversight of stablecoins and staking services into a single comprehensive regime.
- The new framework will remove stablecoins from current payment services rules and reclassify staking as a technology service rather than a collective investment scheme.
LONDON (MarketsXplora) – Britain will introduce a comprehensive cryptocurrency regulatory framework in early 2025, consolidating rules for stablecoins and staking services into a single regime, Economic Secretary to the Treasury Tulip Siddiq announced on Thursday.
Speaking at London’s City & Financial Global Tokenisation Summit, Siddiq, representing the newly elected Labour government, outlined plans to streamline cryptocurrency oversight following delays caused by the recent general election. The legislation was originally slated for implementation by the Conservative government last summer.
“Doing everything in a single phase is simpler and it just makes more sense,” said Siddiq, whose Labour Party won a decisive victory in July’s election.
The new framework marks a significant shift in stablecoin regulation, removing these digital assets from existing payment services rules deemed unsuitable for current applications. Additionally, the government plans to address industry concerns regarding staking services, supporting their classification as technology services rather than collective investment schemes.
“It doesn’t make sense for staking services to have this treatment and the government intends to proceed with removing this legal uncertainty accordingly,” Siddiq explained.
Paybis founder Innokenty Isers told Reuters the timing is strategic, citing two key factors: the need to compete with the European Union’s Markets in Crypto Assets (MiCA) regulation, and capitalizing on market optimism following Donald Trump’s election victory in the United States.
The UK’s initiative parallels global regulatory developments, including the EU’s implementation of MiCA by year-end and the United States’ evolving approach under President-elect Trump, who has pledged to establish a crypto advisory role in his administration.
“With its planned regulatory changes next year, the UK is positioning itself to gain a competitive edge that could offer long-term benefits,” Isers added, noting the potential to attract high-growth startups and drive economic growth.