In a key speech, Tulip Siddiq highlighted the UK government’s commitment to regulating crypto.
- The Economic Secretary announced draft legislation for the crypto industry to be introduced next year.
- The proposed regulatory framework will include new activities for stablecoins alongside other cryptoassets.
- The government plans to continue with the previous administration’s crypto regulations with full implementation.
- Concerns from the Financial Conduct Authority about crypto risks remain significant.
Tulip Siddiq, the Economic Secretary to the Treasury, confirmed in a recent speech that the UK government remains focused on integrating crypto into its financial regulatory frameworks. She assured stakeholders that the development of regulations for the crypto sector, though appearing silent, has been ongoing.
A draft legislative framework is anticipated by early next year, signifying the government’s proactive stance in addressing the growing impact of cryptoassets like Bitcoin on the economy. This announcement aligns with prior proposals from the former government aimed at structuring crypto trading activities and market regulations. Siddiq emphasised the continuity in policy, indicating a follow-through on these established proposals.
The framework will also bring attention to stablecoins, with plans to incorporate new regulated activities. However, the government has decided against integrating stablecoins into UK payment regulations immediately, citing potential regulatory burdens that might not match current usage. These actions reflect a cautious yet deliberate approach to expanding crypto’s role within UK financial systems.
Despite regulatory advancements, the Financial Conduct Authority (FCA) maintains its cautionary stance on crypto investments, underlining the risks involved. This cautious perspective follows ongoing issues with major crypto exchanges like Binance, where regulatory compliance has been contentious. A spokesperson highlighted ongoing concerns, stressing limited authorities to intervene in certain business partnerships, reflecting ongoing challenges in crypto regulation.
The UK’s approach to cryptocurrency regulation reflects a balance between promoting innovation and ensuring financial stability.
