The UK is reportedly considering developing a comprehensive regulatory framework for the cryptocurrency sector by early 2025.
The Labor Party, which came to power in July, will write rules who will understand stablecoins and staking services, Bloomberg reported Thursday (November 21).
“Doing everything in one phase is simpler and it simply makes more sense,” said the economic secretary to the Treasury. Tulip Siddiq said Thursday at a conference, according to the report.
Siddiq told the conference that under the government’s plans, stablecoins would no longer be considered in the country’s current payment services regulation and staking services would have their current legal uncertainty removed, according to the report.
The UK is scrambling to keep pace with the US and Europe in the crypto sector, at a time when US President-elect Donald Trump is courting crypto firms and the European Union Cryptoasset markets (MiCA) is about to be implemented, according to the report.
The need for clarity regulatory frameworks is one of the most pressing issues facing the crypto and blockchain space, PYMNTS reported in July. Regulatory clarity is crucial for the widespread adoption and growth of cryptocurrencies.
In the United States, the Securities and Exchange Commission and other regulators are working on frameworks for cryptocurrencies, but uncertainty remains. The EU MiCA Regulation is a step towards a more unified regulatory approach.
EU implementation of MiCA provisions regarding stablecoins has put the EU at the forefront crypto regulationPYMNTS reported in July. Stricter disclosure requirements, regular audits of crypto companies, and stricter capital reserve requirements will help build trust and transparency in the market.
In the United States, the global bitcoin and cryptocurrency market hit record highs following the November 5 U.S. presidential election, with traders expecting crypto industry benefit from Trump’s policies cryptocurrency support. Bitcoin rose over 40% after the election.
This week saw media reports that Trump’s social media company is considering buying cryptocurrency trading farm Bakkt and that Trump was private meeting with Coinbase CEO Brian Armstrong to discuss staff appointments for the new administration.
