UK Plans to Introduce Crypto Regulation by End of July

Bim Afolami, UK Economic Secretary to the Treasury, stated that the government plans to pass legislation establishing a legal framework for cryptoassets by the end of July.

During the Innovate Finance Global Summit on Monday, Afolami announced the timeline for enacting legislation governing stablecoins, crypto staking, exchange, and custody services.

“We are now working at pace to deliver the legislation to put our final proposals for our regime in place,” Afolami said. “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.”

UK Plans to Finalize Crypto Legislation

In February, Afolami, the Member of Parliament for Hitchin and Harpenden, stated that the United Kingdom government planned to finalize secondary stablecoin legislation within six months.

In October 2023, the UK government announced recommendations outlining its plans to regulate the cryptocurrency business. They included enterprises needing a Financial Conduct Authority (FCA) license before engaging in cryptocurrency-related activity.

The October recommendations followed the UK Treasury’s August consultation response, which agreed on a co-supervision mechanism for systemic stablecoins between the Bank of England and the FCA.

Earlier in 2023, the UK enacted the Financial Services and Markets Bill, which laid the basis for authorities to begin constructing a framework for monitoring stablecoin and cryptocurrency financial activity in the country.