Britain is gearing up to unveil its crypto regulatory framework in 2025 announcementmade at the City & Financial Global Tokenisation Summit in London, underlines the Labor government’s commitment to balancing innovation with security in digital assets.
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What changes for stablecoins and staking?
According to Bloomberg reportthe new framework will give a major facelift to the way stablecoins and staking are regulated. Currently, stablecoins are governed by payment services regulations, which do not fit well with their unique role of maintaining value stability tied to fiat currencies such as the US dollar. Under the updated rules, stablecoins will have their own tailored guidelines, designed to fit their purpose and support their growth.
On the strike side, the government wants to remove legal uncertainties. Staking, in which users lock up tokens to support blockchain operations and earn rewards, is often treated as a collective investment scheme, which carries onerous financial regulations. The government plans to reclassify it as a technology service, making it easier for strikes to thrive without unnecessary red tape.
Why now?
The timing is strategic. The EU is about to implement its Markets in Crypto Assets (MiCA) framework, and the new Trump administration in the US is showing a crypto-friendly stance. Both regions are developing rapidly and Britain does not want to be left behind in what many see as the next financial revolution.
Industry response
Minister of Economic Affairs of the Ministry of Finance Tulip Siddiq explained that it makes sense to tackle everything at once, especially after the delays caused by the general elections. She added that streamlining stablecoins and staking rules into a single framework is key to encouraging innovation and ensuring security.
Paybis founder Innokenty Isers welcomed the move and emphasized its importance. “If Britain doesn’t catch up to the EU’s MiCA framework or the pro-crypto sentiment of Trump’s election, it risks missing out on huge financial opportunities,” he said.
On top of that, Dante Disparte, Circle’s global head of policy, said in October that he expects Britain to introduce stablecoin regulations within months, not years. “We will wait for it,” he added, as companies wait for clearer rules.
Will Britain keep up with the current trend to leverage this trillion-dollar industry? We’ll see!