Economic Secretary Bim Afolami stated at the Innovate Finance Global Summit on Monday that the United Kingdom government plans to propose laws by June or July for stablecoins as well as for cryptocurrency staking, exchange, and custody.
“We are now working at pace to deliver the legislation to put our final proposals for our regime in place,” Afolami explained. “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.”
A historic financial markets bill was enacted by the United Kingdom in 2023, laying the groundwork for stablecoins and cryptocurrencies in general to be regarded as regulated financial operations within the nation. In February of last year, the Bank of England and the Financial Conduct Authority, two local authorities, held consultations on the possible design of a stablecoin system. While the FCA stated it would control the larger cryptocurrency market, the BoE said it would monitor stablecoin suppliers big enough to have an impact on the financial system.
In February, Afolami hinted that secondary stablecoin legislation will soon be introduced and stated that the government was working hard to complete it in six months.
The Conservative Party-led government in the United Kingdom has stated that it aspires to be a hub for cryptocurrency and has consulted on its plans to regulate it. This year’s election in the United Kingdom is predicted to result in the Conservative party’s defeat and the postponement of some of its cryptocurrency plans, which might leave the party with little time to carry out its agenda. Right now, the Labour party is the front-runner.