The U.K. is set to create an all-encompassing regulatory framework to govern the crypto sector in early 2025.
Speaking on Thursday at the Tokenisation Summit in London, economic secretary to the treasury Tulip Siddiq confirmed that the new rules would include cryptocurrency and stablecoins, which are pegged against a more stable asset such as a fiat currency. The news was first reported by Bloomberg.
The crypto industry had been hoping regulations would exclude so-called “staking” services, which is where investors lock their tokens to support a particular blockchain in exchange for a small yield — much like earning interest on cash savings. But Siddiq suggested there would be no special carve outs.
“For me, it doesn’t make sense for staking services to have this treatment,” Siddiq said. “The government intends to proceed with removing this legal uncertainty accordingly.”
The U.K. also recently introduced a new bill that, if passed, would give greater legal protections to crypto assets such as Bitcoin and NFTs, designating them as “personal property” under the proposed law.