According to Economic Secretary Bim Afolami on Monday, the UK government hopes to pass laws regulating stablecoins and staking services within the next six months. Afolami said the government is working hard to bring regulations soon during a Coinbase event in London.
Initially, the Treasury promised in October 2022 to offer regulatory lucidity on cryptocurrencycurrency by 2024. The Financial Services and Markets Act’s passing and a consultation on fiat-backed stablecoins came before this. It is anticipated by industry watchers that stablecoins backed by fiat money will be subject to current payment laws.
This would provide the UK financial regulator the authority to decide which assets are suitable for stablecoin support. Tom Duff Gordon of Coinbase stated that staking is anticipated to receive a new classification, eschewing the designation of a communal investment. There is no time frame for more comprehensive legislation that would regulate cryptocurrencycurrency companies like financial services.
By 2022, Prime Minister Rishi Sunak wanted the UK to become a centre for cryptocurrencycurrency. Nonetheless, the sector claims that operations have been hampered by regulatory ambiguity. More comprehensive cryptocurrencycurrency regulations beyond stablecoins and staking, according to Afolami, are beyond his timetable.
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