UK Treasury Plans Crypto Regulation Framework by July

The United Kingdom Treasury is gearing up to unveil a regulatory framework for crypto assets and stablecoins by July, aiming to foster local innovation in digital assets and blockchain technology.

Bim Afolami, the UK’s economic secretary to the Treasury, highlighted the government’s ongoing efforts to modernize the country’s payments landscape. Speaking at the Innovate Finance Global Summit (IFGS) 2024, Afolami emphasized the significance of crypto regulations in maintaining global competitiveness.

Striking a Balance in Regulation

Afolami underscored the importance of striking a balance between fostering innovation and protecting consumers in the regulatory framework. He stressed the need for the UK to establish itself as a world leader in fintech through effective regulation of crypto assets and stablecoins.

The UK Treasury is finalizing proposals to address stablecoins and crypto staking, with plans to unveil them by June or July. Once implemented, various crypto asset activities, including exchange operations and custody of customer assets, will fall under regulatory oversight for the first time.

Afolami declared the creation of an open finance task team at the IFGS summit. Using data sets and commercial incentives, this task group will draft proposals to advance SME financing through open finance.

The ability to immediately collect cryptocurrency assets from exchanges and custodial wallet providers will be granted to UK authorities starting of April 26. This action is in response to changes made to the Economic Crime and Corporate Transparency Act 2023, which strengthen the authority of the National Crime Agency to seize property thought to be connected to illegal activity.