UK Plans New Crypto Regulations to Lure Firms From Trump-Led US
The United Kingdom is reportedly preparing to roll out new cryptocurrency regulations this month.
The rules are part of an effort by the U.K. government to offset the attraction of doing business under the United States’s new pro-crypto president, Bloomberg reported Thursday (Nov. 14)/
The British Treasury is working on legislation dealing with stablecoins and planning to exclude staking services from existing financial regulation, according to the report.
“The U.K. has a real opportunity to capitalize on a second-mover advantage, but only if it can mobilize,” said Laura Navaratnam, U.K. policy lead at the Crypto Council for Innovation, per the report. “We are a little bit further than even the Treasury and the regulators would’ve ideally wanted.”
The news comes after President-elect Donald Trump recaptured the White House, which was viewed as a victory for the crypto industry.
With Trump promising to make the U.S. a crypto haven, the U.K. is taking measures to make its shores seem enticing to the digital asset sector, according to the report. That includes an eventual consultation paper on stablecoins from the Financial Conduct Authority early next year, followed by a phased approach to its regulation of other aspects of crypto.
“The government will also update the industry on progress made in the digital securities sandbox, a live environment for blockchain experimentation jointly run by the FCA and the Bank of England,” the report said.
The U.K.’s slow pace of legislation has made crypto companies reluctant to focus resources on the country, especially with the European Union’s wide-ranging Markets in Crypto-Assets (MiCA) regulation expected to be fully implemented by the year’s end, according to the report.
While Trump at one time called cryptocurrencies a scam, he appeared to have a change of heart about the crypto industry during his most recent presidential campaign.
“Trump’s rebranding as a crypto-friendly candidate is part of a larger trend among Republicans to embrace digital currencies and blockchain technology,” PYMNTS wrote in July. “This strategy aims not only to attract a young and tech-savvy demographic but also to tap into the substantial financial resources of the crypto sector. By aligning with the interests of cryptocurrency enthusiasts, Trump and his party are seeking to leverage the political and economic potential of this burgeoning industry.”
The post UK Plans New Crypto Regulations to Lure Firms From Trump-Led US appeared first on PYMNTS.com.