The UK is reportedly preparing to roll out new regulations on cryptocurrencies this month.
The rules are part of an effort by the British government to counterbalance the lure of doing business under new pro-crypto US President Bloomberg. reported Thursday (November 14)/
The UK Treasury is working on stablecoin legislation and plans to exclude staking services from existing financial regulations, according to the report.
“The UK has a real opportunity to capitalize on second-mover advantage, but only if it can mobilize itself,” said Laura NavaratnamBritish politician Crypto Council for Innovationaccording to the report. “We are a little further away than even Treasury and regulators would have ideally liked.”
The news comes after President-elect Donald Trump took back the White House, which was considered a victory for the crypto industry.
As Trump promises to make the United States a cryptographic safe havenUK takes steps to make its shores attractive for the digital assets sectoraccording to the report. This includes a possible consultation paper on stablecoins of the Financial Conduct Authority early next year, followed by a phased approach to its regulation of other aspects of crypto.
“The Government will also update the industry on progress in the Digital Securities Sandbox, a real-world environment for blockchain experimentation run jointly by the FCA and the Bank of England”, says the report.
The slow passage of laws in the United Kingdom has made crypto companies reluctant to focus their resources on the country, especially given the European Union’s vast plans. Cryptoasset markets (MiCA) is expected to be fully implemented by the end of the year, according to the report.
While Trump at once called cryptocurrencies a scam, he seemed to have changed his mind about the crypto industry during his last presidential campaign.
“Trump’s rebranding as a crypto-friendly candidate is part of a broader trend among Republicans to embrace digital currencies and blockchain technology,” PYMNTS wrote in July. “This strategy aims to not only attract a young, tech-savvy demographic but also tap into the crypto sector’s substantial financial resources. By aligning with the interests of cryptocurrency enthusiasts, Trump and his party looking for to exploit the political and economic potential of this booming industry.
