UK To Introduce Comprehensive Crypto Rules

The UK will draft comprehensive crypto regulations in 2024, focusing on stablecoins, staking, and competing with US and EU developments.

The UK government, under Prime Minister Keir Starmer, plans to draft a regulatory framework for the cryptocurrency sector early next year, Economic Secretary to the Treasury Tulip Siddiq announced at a conference in London on Thursday, as first reported by Bloomberg.

TechCrunch notes that this move follows the UK introducing an new bill to classify crypto assets like Bitcoin and NFTs as “personal property,” offering them greater legal protection. The initiative aims to help the UK keep pace with developments in the US and Europe, says Bloomberg.

The framework will address stablecoins — cryptocurrencies tied to stable assets like the US dollar — and staking services, where investors lock up tokens to support blockchain operations in return for a yield, says Bloomberg.

These rules will form part of a single overarching regime for cryptoassets. “Doing everything in a single phase is simpler and it just makes more sense,” said Siddiq as reported by Bloomberg.

Stablecoins will no longer be regulated under the UK’s existing payment services framework, which Siddiq described as inappropriate given their “current use cases,” says Bloomberg.

The UK is also aiming to counter the pull of President-elect Donald Trump’s administration in the US, which has made efforts to attract crypto businesses, according to Bloomberg.

Uncertainty over UK legislation has caused hesitation among companies, particularly as the EU’s comprehensive Markets in Cryptoassets regulation is set to take effect by the end of the year.

In addition, the industry is seeking a carve-out for staking to avoid it being classified as a collective investment scheme, a designation that would subject it to stricter oversight.

Siddiq indicated alignment with this view, saying, “For me, it doesn’t make sense for staking services to have this treatment. The government intends to proceed with removing this legal uncertainty accordingly,” reports Bloomberg.

The Labour government’s proactive approach follows its landslide victory in July’s general election, signaling a push to provide clarity and foster growth in the UK’s crypto sector, notes Bloomberg.