The UK Economic Secretary to The Treasury, Bim Afolami, has announced plans for the government to introduce legislation by the end of July to establish a regulatory framework for cryptoassets.
Speaking at the Innovate Finance Global Summit on Monday, Afolami outlined the timeline for enacting legislation concerning the oversight of stablecoins, crypto staking, exchange, and custody services.
“We are now working at pace to deliver the legislation to put our final proposals for our regime in place,” Afolami stated. “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.”
The UK’s Efforts to Develop a Crypto Regulatory Framework
In February, Afolami, who represents Hitchin and Harpenden in Parliament, reiterated the government’s goal to finalize secondary stablecoin legislation within six months.
In October 2023, the UK government unveiled proposals outlining its approach to regulating the crypto sector, including a requirement for firms to obtain authorization from the Financial Conduct Authority (FCA) for crypto-related activities.
These proposals followed the UK Treasury’s consultation response in August, which endorsed a collaborative approach between the Bank of England and the FCA to supervise systemic stablecoins.
Earlier in 2023, the UK passed the Financial Services and Markets Bill, laying the groundwork for regulators to begin developing a framework to oversee stablecoins and cryptocurrency financial activities within the country.
