Rivalling EU MiCA with New Stablecoin Rules
The UK is preparing to launch its cryptocurrency regulatory framework in 2025. announcementThe announcement, made at the Cities & Finance Global Tokenization Summit in London, underscores the Labor government’s commitment to balancing innovation and security in the digital asset space.
Get inside and find out what this means to you!
What happened to stablecoins and staking?
According to Bloomberg Reportthe new framework will make major adjustments to the way stablecoins and staking are regulated. Stablecoins currently fall under payment services rules, which does not align well with their unique role of maintaining value stability relative to fiat currencies such as the U.S. dollar. Under the updated rules, stablecoins will receive their own customized guidelines designed to serve their purpose and support their growth.
When it comes to pledges, the government aims to remove legal uncertainty. Staking, in which users lock up tokens to support blockchain operations and earn rewards, is often viewed as a collective investment scheme, which brings with it strict financial regulation. The government plans to reclassify it as a technology service, making it easier for staking to thrive without unnecessary red tape.
Why now?
The timing is strategic. The European Union is about to implement its Markets in Crypto-Assets (MiCA) framework, while the incoming Trump administration in the United States has also signaled a crypto-friendly stance. Both regions are growing rapidly and Britain does not want to be left behind in what many consider the next financial revolution.
Industry reaction
Finance Minister Tulip Siddique explained that it makes sense to address all the issues at once, especially after the delays caused by the general election. She added that streamlining stablecoin and staking regulation into a single framework is key to encouraging innovation while ensuring security.
Paybis founder Innokenty Isers praised the move and stressed its importance. “If the UK does not catch up with the EU’s MiCA framework or the pro-cryptocurrency sentiment following Trump’s election, it risks missing out on significant financial opportunities,” he said.
In addition to this, Circle’s global head of policy Dante Disparte said in October that he expected stablecoin regulations to be introduced in the UK within months rather than years. “We will wait for it,” he added, as companies await clearer rules.
Will the UK follow current trends to capitalize on this trillion-dollar industry? we will see!
