The United Kingdom is working on developing a regulatory plan for stablecoins and staking activities by mid-2024: details.
The UK government intends to draft a new law to regulate the use of stablecoins and staking activities within the next six months. This decision was announced on February 19th by Bim Afolami, Economic Secretary to the Treasury.
The regulatory approach
The United Kingdom has pursued a two-phase approach to regulating digital assets. Last October, the Treasury released final proposals for regulating stablecoins, focusing particularly on their use in payments. The second phase of the government’s plan aims to develop a broader regulatory framework to regulate the entire digital asset sector.
With the introduction of the new guidelines, stablecoins will be subject to regulation in two main areas: their use in payments and their issuance or custody within the country.
According to the new proposal, the Bank of England, the Financial Conduct Authority (FCA), and the Payment Systems Regulator will collaborate to oversee the use of certain stablecoins.
Treasury Minister Andrew Griffith has expressed approval for the new regulatory framework, calling it a “step in the right direction.”
