UK seeks to lock in new stablecoin rules within next six months: Bloomberg

The UK government

is “pushing very hard” to legislate new regulations on stablecoins and crypto staking services within the next six months, the country’s Economic Secretary to the Treasury Bim Afolami said Monday during an event hosted by Coinbase, according to Bloomberg.

The official said that the government intends to “get these things done as soon as possible” over the next six months, Bloomberg reported. While the UK has yet to set a date for its next general election, it is legally bound to take place by January 2025.

Afolami’s comment followed the Treasury’s consultation response last August, in which it agreed on the arrangement that the Bank of England and the Financial Conduct Authority would co-supervise systematic stablecoins.

In October 2023, the UK government published proposals that outlined its intention to bring the crypto sector under its realm of financial regulations, which included requiring firms to obtain authorization from the FCA to perform crypto-related activities.

Following this announcement, several crypto firms, including Revolut and Bitfinex, have suspended their services in the UK. In an attempt to remain compliant with the FCA rules, Coinbase started requiring its UK users to submit risk-acknowledgment forms starting last month.

“For certain crypto players, the FCA’s rather stringent marketing rules are acting as a deterrent and a potential reason to leave the jurisdiction,” Oliver Linch, a lawyer and CEO of crypto exchange Bittrex Global, told The Block in an interview last month. Bittrex Global announced in November that it was winding down amid regulatory troubles and shrinking market share.