The UK government will introduce new crypto regulations this month, aiming to prevent startups from being lured by Donald Trump’s pro-crypto policies in the US. The Treasury is preparing legislation focusing on stablecoins and staking, to provide a clearer framework that could boost Britain’s appeal as a digital asset hub. However, industry insiders are concerned about the slow regulatory progress in Britain, especially as the EU has already made progress on its Markets in Cryptoassets regulation.
New policies at a glance
According to the Bloomberg report, to counter the US’s growing attraction to cryptocurrencies, the UK Treasury is focusing on stablecoin legislation. Two new bills will provide clarity to stablecoin providers, addressing regulatory gaps and ensuring the country remains attractive to crypto companies. This legislation could include exemptions for services such as staking and custodial wallets, providing companies with a stable framework for growth.
Meanwhile, Britain is also advancing broader regulatory efforts through the Property Bill, which protects ownership rights in digital assets such as cryptocurrencies, NFTs and even carbon credits. By legally recognizing these assets as personal property, Britain aims to improve investor protection and tackle problems such as fraud and ownership disputes.
Trump’s impact on global crypto investments
Moreover, Trump’s victory has shifted investors’ attention to the US, which is seen as a safe haven for digital assets. His pro-crypto vision, including possible steps such as designating Bitcoin as a strategic reserve, could further attract global investment and create a global FOMO (fear of missing out), potentially pushing other countries to follow suit.
In response, UK regulatory initiatives aim to reassure crypto businesses, providing a balanced approach between investor protection and market growth, and ensuring they remain competitive on the global stage.
Crypto response
The UK crypto market shows resilience in 2024, with 18% of consumers still owning crypto as in 2022. The sell-off is lower than other countries, and a strong 59% of UK crypto owners feel at least its ease in investing. 5% of their portfolios consist of digital assets, surpassing the global average. Furthermore, many former UK crypto holders are ready to re-enter, with 77% planning to buy again in the coming year, reflecting steady confidence in crypto as a long-term investment.
Will other countries follow Trump-led crypto policies, we’ll find out?
