UK Sets to Greenlight New Stablecoin Regulation by July

The United Kingdom is preparing to introduce new stablecoin regulation and guidelines for other crypto asset activities. According to the Economic Secretary Bim Afolami at the Innovative Finance Global Summit, this move aims to bring operations such as running an exchange, managing customer assets, and other related activities under a regulatory framework.

In addition to stablecoins, the legislation will also impact crypto asset activities such as staking, exchange, and custody services. Under the new regulations, these activities will need to comply with specific rules to ensure security and transparency for investors.

Stablecoin Regulation in the UK

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

In a previous statement, Afolami affirmed that the UK government is pushing very hard to implement the staking and stablecoin regulation in the country while adding: “We are very clear that we want to get these things done as soon as possible.”

UK Treasury Publish Final Proposal for Crypto Regulation

If the predicted July timeline is correct, the UK will be one of the few regions around the globe to have implemented a regulatory framework for digital assets based on fiat currencies and staking activities.

Meanwhile, in response to the UK’s treasury consultation on a concise regulatory regime for crypto assets, the government has published a detailed final proposal for the regulation of digital assets and related offerings in the region. The government’s position is that firms dealing directly with UK retail consumers should be required to be authorized irrespective of where they are located.

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 in the country are very close to passing a long-awaited stablecoin bill and 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, which was designed to address the danger and skepticism surrounding digital assets In 2022.