World Crypto Global
- Written by: Damian Chmiel
- Mon, 15 Apr 2024
- Israel
The UnitedKingdom is gearing up to introduce new legislation for cryptocurrencies andstablecoins by June or July 2024, according to the Economic Secretary, Bim Afolami.Speaking at the Innovate Finance Global Summit on Monday, Afolami stated thatthe government is working swiftly to deliver the legislation that will put thefinal proposals for the crypto regulatory regime in place.UK Set to Introduce NewCrypto and Stablecoin Regulations by Mid-2024"Weare now working at pace to deliver the legislation to put our final proposalsfor our regime in place," Afolami said during the Innovate Finance GlobalSummit.Theannouncement comes after the UK passed the FinancialServices and Markets Act in June 2023, which enabled cryptocurrencies to betreated as regulated financial activities.Once itgoes live, a whole host of crypto asset activities, including operating anexchange, taking custody of customers assets and other things, will comewithin the regulatory perimeter for the first time, the Economic Secretaryadded.JUST IN: UK plans to unveil new crypto and stablecoin regulations by July, announces government minister. #UK #CryptoRegulation Breaking Whale (@BreakingWhale) April 15, 2024Thegovernment has expressed its intention to make the UK a preferred destinationfor the crypto industry and plans to bring relevant activities under thepurview of the Financial Conduct Authority (FCA). In the meantime, newregulations concerning the promotion of digital assets have comeinto effect in the country.While itremains to be seen exactly what new regulation may look like and how it will beenforced, its inevitable that the future of crypto lies within far moreregulated and supervised parameters, Duncan Ash, the Head of Strategy at blockchainprotection firm Coincover commentedin an op-ed article for Finance Magnates.Regulatory Winds of ChangeUnder thenew regulations, a wide range of crypto asset activities will fall within the regulatory perimeter for the first time, including operating an exchange, custodial services, and other related activities. The FCA will soon consult on anauthorization regime for crypto companies, and the government also plans toformulate equivalence measures for overseas firms.The UKgovernment has taken a phased approach to introducing crypto regulations, withlegislation for fiat-backed stablecoins being the first priority. Other areas,such as algorithmic stablecoins, will follow as the government bringsactivities like lending and trading into the fold of conventional financialregulation.Despite thegovernment's efforts to create a crypto-friendly environment, the UK industry has faced some challenges. Crypto firms have complained about delays andpoor feedback from the FCA, and recently introduced rules restricting cryptopromotions have led some well-known firms to cut UK services altogether. Accordingto data from February 2024, the market watchdog issuedover 450 alerts on illegal crypto ads in just three months.In Europe, Polandis additionally preparing to regulate cryptocurrencies later this year. Under new laws,the local financial supervisory authority, KNF, will be allowed to block thecryptocurrencies of companies and users for 96 hours in cases of mere suspicionof unregulated trading.This article was written by Damian Chmiel at www.financemagnates.com.
