UK government prepares to regulate cryptocurrencies next year
Date: 2024-11-22 Author: Henry Casey Categories: IN WORLD
After delays caused by the general election in July, the new UK government is set to push ahead with cryptocurrency regulation. Kiir Starmer, the leader of the Labour Party, has been elected as Prime Minister.
Tulip Siddiq, who serves as the UK Treasury’s economic secretary and the City Secretary, said that stablecoins will not be regulated under the current Payment Services Act. In the future, digital currencies backed by fiat money will be included in a new legislative framework, the development of which will begin in early 2025.
“It’s easier and more logical to introduce changes in one step,” Siddiq said on November 21 at the City & Financial Global Tokenization Summit in London, citing Bloomberg data.
The development of this legislative project has already led to a temporary delay in the crypto industry in the UK. Meanwhile, several other European countries, including the European Union, have already implemented similar regulations in the middle of this year.
The EU this year introduced regulations called Markets in Crypto-assets (MiCA), which provide a universal legislative framework to enhance consumer protection and improve financial stability in the region.
In addition, countries such as France, Switzerland, and Liechtenstein have already implemented their own laws regulating cryptocurrency transactions.
