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UK to Issue New Crypto, Stablecoin Legislation by July, Minister Says

UK to Issue New Crypto, Stablecoin Legislation by July, Minister Says

UK to Issue New Crypto, Stablecoin Legislation by July, Minister Says

The country passed a landmark bill in June 2023, which laid the foundation for stablecoins and other crypto to be treated as regulated financial activities.

The country passed a landmark bill in June 2023, which laid the foundation for stablecoins and other crypto to be treated as regulated financial activities.

The country passed a landmark bill in June 2023, which laid the foundation for stablecoins and other crypto to be treated as regulated financial activities.

AccessTimeIconApr 15, 2024, 10:17 AM
Updated Apr 15, 2024, 10:20 AM
U.K. Economic Secretary Bim Afolami speaking at Innovate Finance Global Summit 2024 (Camomile Shumba/CoinDesk)
  • The U.K. will issue new legislation for stablecoins as well as crypto staking, exchange and custody by June or July this year, Economic Secretary Bim Afolami said.
  • The Conservative-party-led government has said it wants to make the U.K. a global hub for crypto and passed legislation last year to recognize crypto and stablecoins as regulated financial activities in the country.

The U.K. government is set to put forward legislation for stablecoins as well as for crypto staking, exchange and custody by June or July, Economic Secretary Bim Afolami said at the Innovate Finance Global Summit on Monday.

"We are now working at pace to deliver the legislation to put our final proposals for our regime in place," Afolami said. "Once it goes live, a whole host of crypto asset activities, including operating an exchange, taking custody of customers’ assets and other things, will come within the regulatory perimeter for the first time."

In 2023, the U.K. passed a landmark financial markets bill that laid the foundation for stablecoins and crypto broadly to be treated as regulated financial activities in the country. Local regulators, the Financial Conduct Authority and the Bank of England, both consulted on what a stablecoin regime would look like last February. The BoE said it would oversee stablecoin providers that were large enough to affect the financial system, while the FCA said it would regulate the wider crypto space.

Afolami teased the coming of secondary stablecoin legislation in February, adding that the government was pushing to get it done within six months.

The U.K.’s Conservative Party-led government has said it wanted to be a crypto hub and has since consulted on its ambitions to regulate crypto. The U.K. is expected to have an election this year, which could see the Conservative party ousted and some crypto plans left in limbo, meaning the party could have a limited time left to execute its plans. The Labour party is the current favorite to win.

Edited by Sandali Handagama.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.


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