Within the next six months, the UK government wants lawmakers to approve new regulations on staking and stablecoin.
At an industry event on Monday, the Treasury’s economic secretary, Bim Afolimi, stressed the government’s commitment to “pushing very hard” for the swift introduction of staking and stablecoin regulations, Bloomberg reported.
Afolimi stressed that the government must act to pass the regulations within the next six months, underscoring the urgency.
The UK has taken a two-pronged approach to regulating cryptocurrencies. In October, the Treasury published its final proposals for oversight of fiat-based stablecoins, specifically targeting their use in payments.
The crypto asset sector, however, will face its own regulations under separate laws.
The phased approach allows for a focus on stablecoin coins, which the government considers to have the potential to influence mainstream finance. At the same time, it lays the groundwork for resolving differences across the cryptocurrency landscape.
Two regulations cover stablecoins backed by Fiat: use in payments and issuance and storage in the UK.
The proposed regulations will oversee certain fiat-based stablecoin by three regulators: The Bank of England, the Financial Services Authority and the Payment Systems Regulatory Authority.
The recommendations come after a consultation in February about upcoming financial services regulations for crypto assets in the UK. In-depth feedback from various companies and stakeholders led to a strong response to these regulations.
Some are praising the UK’s recent proposed cryptocurrency regulations as they are in line with Rishi Sunak ‘s 2022 plan to support a national cryptocurrency hub, when others remain cautious. After months of public anticipation, Treasury Minister Andrew Griffith approved theystablecoin framework, calling it “a step in the right direction.”
