UK Government Plans New Crypto Legislation by July to Establish Global Hub Status

The UK government, led by the Conservative Party, is set to introduce new legislation by June or July 2024 covering stablecoins, crypto staking, exchange, and custody activities, according to Economic Secretary Bim Afolami. The aim is to establish the UK as a global crypto hub, with legislation passed in 2023 already recognizing crypto and stablecoins as regulated financial activities. The proposed legislation will bring various crypto asset activities within the regulatory perimeter for the first time. Both the Financial Conduct Authority and the Bank of England have been involved in consultations regarding stablecoin regulation, with the BoE overseeing large stablecoin providers and the FCA regulating the wider crypto space. Afolami previously indicated the government's intent to finalise secondary stablecoin legislation within six months. However, with a looming election this year, there's uncertainty about the future of these plans, as the Labour Party emerges as a frontrunner, potentially impacting the implementation timeline for crypto regulations.