The British government is set to introduce new regulations for stablecoins and other crypto services, including staking, exchange, and custody, by the middle of the year. Economic Secretary Bim Afolami made this announcement at the Innovate Finance Global Summit, highlighting the progress towards establishing a comprehensive regulatory framework. The government is fast-tracking the legislation to finalize the new regulatory proposals.

Once implemented, these regulations will bring various cryptocurrency operations, such as exchanges and custodial services, under regulatory oversight for the first time. Last year, the U.K. passed a significant financial markets bill that laid the foundation for treating stablecoins and broader cryptocurrency activities as regulated financial services in the country. The Financial Conduct Authority (FCA) and the Bank of England (BoE) collaborated to shape the regulatory approach to stablecoins.

The BoE will supervise stablecoin entities that pose systemic risks, while the FCA will regulate the broader cryptocurrency market. Additional legislation targeting stablecoins is currently in progress and is expected to be finalized within the next six months. The U.K. has been gradually improving its crypto adoption through new regulatory and legislative measures. Recently, the London Stock Exchange (LSE) started accepting listing applications for Bitcoin and Ethereum exchange-traded notes (ETNs).

Similar to Bitcoin ETFs in the U.S., these ETNs will enable institutional investors to access the crypto market, with trading scheduled to commence on May 28.

Post Views: 6