UK Economic Secretary at the Treasury, Bim Afolami, said the country is working on crypto regulatory legislation that would allow for various activities.
Speaking at the Innovate Finance Global Summit (IFGS) 2024 on April 15, Afolami highlighted the far-reaching nature of the regulatory regime, saying the change would bring a “whole range” of crypto activities within legal bounds.
The regime specifically focuses on stablecoins and staking. The rules also allow companies to offer crypto exchange services and grant custody of customers’ crypto holdings.
The regulations have wider implications for Britain. Afolami called the UK’s crypto regulatory regime a “cornerstone” in its position as a fintech global leader. He also said that Britain is “committed to creating a regulatory environment” that enables innovation while protecting consumers.
The UK government plans to legislate its final proposals on the crypto regime in June or July, before the government’s summer recess.
Rules in progress since 2023
The UK completed its approach to crypto regulation in October 2023. According to official documents, the rules address issues such as lending and market abuse, in addition to the focus areas mentioned by Afolami.
The rules avoid banning cryptocurrencies or treating unbacked cryptocurrencies as a form of gambling rather than a regulated financial service.
Afolami previously discussed the timeline at a February event hosted by Coinbase. He said the government aims to advance the legislation “as quickly as possible,” and the rules could be approved in the next six months.
The UK government has been considering the digital securities sandbox separately since November 2023. She started a consultation period in April. The government will accept sandbox applicants starting this summer, while the selection process will be completed in the fall.
The report that Britain will legislate for a ‘whole range’ of crypto activities from the summer first appeared on CryptoSlate.