UK’s New Crypto Regulations to Cover Stablecoins and Staking Services
The United Kingdom is planning to establish a comprehensive regulatory framework to oversee the cryptocurrency sector in early 2025.
During her address on Thursday at the Tokenisation Summit in London, economic secretary to the treasury Tulip Siddiq announced that the upcoming regulations will encompass cryptocurrencies and stablecoins, which are tied to more stable assets like fiat currencies. This information was initially reported by Bloomberg.
The cryptocurrency industry had hoped that the new regulations might exclude “staking” services—where investors lock their tokens to support a specific blockchain in return for a modest yield, akin to earning interest on savings. However, Siddiq indicated that there would not be any specific exemptions.
“In my view, it doesn’t seem reasonable for staking services to receive different treatment,” Siddiq stated. “The government plans to address this legal uncertainty accordingly.”
Additionally, the U.K. has recently put forth a new bill that, if enacted, would provide enhanced legal protections for crypto assets like Bitcoin and NFTs, classifying them as “personal property” under the suggested legislation.