The U.K. government is preparing to introduce new legislation covering crypto staking, stablecoin, exchange and custody services by June or July 2024.
The nation’s Economic Secretary, Bim Afolami, reportedly announced this at the Innovative Finance Global Summit on Monday, April 15.
Afolami stated that active efforts are underway to finalize and implement this legislation. Once implemented, he added that this legislation will bring a wide array of cryptocurrencies under regulatory oversight for the first time.
This development builds upon the United Kingdom’s move last year when it passed the Financial Services and Market Act, which recognized digital assets as regulated financial activities.
In February 2024, the federal secretary hinted that plans are in place to introduce secondary virtual asset legislation within the next six months. At the time, Afolami reportedly stated that the government wanted to get “these things done as soon as possible.”
With ambitions to position itself as a leading global crypto hub, the U.K. government aims to consolidate key crypto-related activities under the oversight of its Financial Conduct Authority (FCA). Notably, the FCA has begun enforcing legislation mandating the responsible promotion of crypto and stablecoin assets in the country. The regulation, which was enacted in the third quarter of 2023, regulates the marketing of digital assets to retail users.
Also, in January 2024, the U.K. Government released a report, assuring citizens and crypto users residing within its borders that the forthcoming legislation for its CBDC will focus on user privacy and the control of their monies. The report further outlined the role of new and innovative technologies in transforming both retail and wholesale transactions.
READ MORE: UK Regulators Propose Digital Securities Sandbox to Foster Financial Innovation
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