Unlocking Certainty: UK’s Plan For Clear Crypto Regulations By July

The UK Treasury plans to unveil new regulations for crypto and stablecoins by July to foster innovation in digital assets and blockchain.

Bim Afolami, the UK’s economic secretary to the Treasury, announced this initiative at the Innovate Finance Global Summit (IFGS) 2024, emphasizing the government’s commitment to modernizing the country’s payment infrastructure.

In addition to the U.K.‘s emphasis on advancing fiat payment innovation, Afolami stressed the significance of crypto regulations for maintaining global competitiveness.

He stated, ‘When it comes to genuine transformation, I firmly believe that our status as a fintech frontrunner hinges on the effectiveness of our regulatory framework for crypto assets and stablecoins.’

Afolami also underscored the British government’s approach to regulation, striving to strike a balance that fosters innovation among firms while safeguarding consumer interests.”

Keynote Address by Bim Afolami, Economic Secretary to the Treasury, at IFGS 2024. Source: YouTube.

The U.K. Treasury is finalizing proposals to address stablecoin and crypto staking, expected to be delivered by June or July.

The minister noted that once implemented, various crypto asset activities such as exchange operations and custody of customer assets will fall under regulatory oversight for the first time.

Additionally, Afolami announced the establishment of an open finance task force during the conference.

The task force will develop precise recommendations, identifying the specific commercial data sets needed to advance CFIT’s SME lending in the realm of open finance,” he clarified.

U.K. Authorities Gain Crypto Control

Moreover, Starting April 26, authorities in the UK will have the ability to access crypto assets directly from exchanges and custodian wallet providers.

This new law, resulting from amendments to the Economic Crime and Corporate Transparency Act 2023, empowers the National Crime Agency to seize suspected crypto assets associated with illicit activities without lengthy legal processes.

The Economic Crime and Corporate Transparency Act 2023. Source: U.K. Parliament

Although it didn’t detail its process, the primary method for eliminating a crypto token is typically by burning it, which involves transferring the tokens to a burn wallet address to remove them from circulation.

Related Reading | British Banks Lead The Charge: Tokenization Trials & Global Initiatives

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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