UK Sets to Greenlight Crypto Regulation Framework In 2025

The United Kingdom (UK) plans to introduce new rules for the cryptocurrency industry by early next year. This will help create clarity and stability in a sector that has been uncertain for a long time. The announcement comes as the European Union’s new crypto laws, Markets in Crypto Assets (MiCA), will apply in its member countries, marking a big step in global crypto regulation.

Stablecoin and Staking Regulation in the UK

During a recent conference, Tulip Siddiq, the U.K.’s economic secretary to the Treasury, shared the government’s plans for the cryptocurrency market. Siddiq stated that the new rules will focus on important areas like stablecoins and staking services. The proposed framework will support the U.K.’s overall goal of encouraging innovation.

For months, unclear rules in the U.K. have made it hard for businesses and investors in the crypto market. People in the industry worry about inconsistent regulations, which have slowed innovation and weakened the U.K.’s global competitiveness. Siddiq said the new framework will clarify these issues and support the growth of the crypto sector.

UK Treasury Publish Final Proposal for Crypto Regulation

Meanwhile, the introduction of this legislation is expected to have a significant impact in the UK. companies operating in crypto will adapt to the new rules and ensure compliance to continue their operations. This may involve revising business practices and implementing new security measures.

Recall that the UK predicted July for its stablecoin regulation. In response to the UK’s treasury consultation on a concise regulatory regime for crypto assets, the government published a detailed final proposal for digital asset regulation and related offerings in the region. The government believes that firms dealing directly with UK retail consumers should be authorized despite their location.

Stablecoin Bill Coming to the US Soon

In February, Maxine Waters, the American politician serving as the United States representative for California’s 43rd congressional district since 1991, stated that lawmakers are very close to passing a long-awaited stablecoin bill. They are trying to reach a deal with House Financial Services Committee Chair Patrick McHenry.

As reported earlier, US lawmakers postponed the timeline for evaluating the stablecoin bill, designed to address the danger and skepticism surrounding digital assets in 2022.