The United Kingdom plans to establish a new regulatory framework for cryptocurrencies

In a context where the cryptocurrency market is experiencing explosive growth, the United Kingdom is preparing to introduce a new regulatory framework to govern this dynamic sector. Set to come into effect in early 2025, this project aims to establish clear rules on digital assets and regulate stablecoins, while addressing growing concerns regarding consumer protection and innovation. This regulatory shift is seen as a crucial step in making the United Kingdom a leader in blockchain technologies and decentralized finance.

At the heart of a rapidly evolving regulatory landscape, the United Kingdom is preparing to implement a new regulatory framework aimed at governing the market for cryptocurrencies and stablecoins. This initiative, scheduled for early 2025, positions itself in response to recent regulatory developments within the European Union, notably the “MiCa” regulation. The British government aims to establish a clear legal structure to attract investors and stimulate innovation within this exponentially growing sector.

A long-term regulatory framework

The United Kingdom’s desire to create a specific regulatory framework for cryptocurrencies arises from a necessity to adapt to a constantly evolving market. Initial discussions around these new regulations began several months ago, but were postponed due to political changes and the appointment of Keir Starmer as Prime Minister last July. He has, however, confirmed that the government would continue along this path to transform the United Kingdom into a global hub for digital assets.

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The importance of stablecoins

Stablecoins play a major role in this momentum, as they are increasingly used in digital transactions. Tulip Siddiq, Economic Secretary to the Treasury, specified that the upcoming regulation would focus not only on cryptocurrencies in general but also on stablecoins, which will benefit from rules tailored to their specificities. The goal is to no longer subject these assets to the current regulation on payment services, deemed inadequate for the nature of these financial instruments.

Attracting investors and businesses

With the emergence of new legislation favorable to cryptocurrencies at the international level, the United Kingdom aims to once again attract investors and businesses from the sector, which have thus far turned to more welcoming markets, particularly in the United States. The American market has, on its side, initiated a promising dynamic under the leadership of its president, who has expressed a desire to make the United States “the global capital of cryptocurrencies”. However, the United Kingdom seeks to reverse this trend by establishing a regulation that guarantees consumer protection while fostering innovation.

A competitiveness issue

The absence of a clear regulatory framework has created a climate of uncertainty that has made companies hesitant to set up in the United Kingdom. The country intends to remedy this lack of regulatory evolution. Meanwhile, the European Union has already adopted regulations, such as the one concerning crypto-assets markets, which will be implemented by the end of the year. This situation highlights the necessity for the United Kingdom to act quickly and effectively to avoid falling behind in the race for the regulation of digital assets.

A balance between security and innovation

As the United Kingdom prepares to launch these new regulations, it also announces that one of its main objectives will be to protect consumers while ensuring a favorable environment for innovation in blockchain and decentralized finance. With around 2.5 million British citizens owning digital assets, the need for an appropriate legal framework becomes a crucial issue to enhance public trust and encourage broader adoption of blockchain technologies.

New regulatory framework for cryptocurrencies in the United Kingdom

• Expected effective date: Early 2025
• Main objective: Attract investors to cryptocurrencies
• Target area: Stablecoins and cryptocurrencies
• Initiative author: British government under Keir Starmer
• Regulation characteristics: Tailored to the specifics of digital assets
• Expected impact: Establish the United Kingdom as a global hub for digital assets
• Legislation repercussions: Better consumer protection while fostering innovation
• Context: Reaction to the evolving regulatory landscape of the European Union
• Affected public: More than 2.5 million British citizens own cryptocurrencies

Pierre Grifter