The announcement was made during the City & Financial Global Tokenisation Summit held in London on 21 November 2024. The timeline follows a delay caused by the general election earlier this year, which brought a change in government.
The Treasury Economic Secretary, Tulip Siddiq, outlined that the upcoming framework would address various aspects of the crypto market, including stablecoins, staking services, and cryptocurrencies more broadly. She emphasised a unified approach to the regulations, noting that handling all aspects in one phase is a more straightforward approach.
Stablecoins, Siddiq explained, do not align well with existing payment services regulations due to their distinct characteristics. Although stablecoin legislation has been under discussion since the publication of consultation papers in October 2023, it was never anticipated before 2025 according to cointelegraph.com.
The same source reveals that another significant concern is the regulatory treatment of staking services. Industry participants are wary of these services being classified as ‘collective investment schemes,’ which could impose stricter rules. Addressing this, Siddiq expressed the government’s intention to eliminate legal uncertainties.
The UK’s previous Conservative government aimed to position the country as a global cryptocurrency hub. However, the UK has often been regarded as having a difficult regulatory landscape, partly attributed to the stance of the Financial Conduct Authority (FCA), an independent regulatory body.
By contrast, the European Union's Markets in Crypto-Assets (MiCA) regulation will take full effect by the end of this year, providing regulatory clarity across EU member states. The lack of similar certainty in the UK could raise concerns about its competitiveness in attracting crypto businesses.
While the Labour government has introduced some measures, including a September bill clarifying the legal status of non-fungible tokens (NFTs), cryptocurrencies, and carbon credits as property, substantial regulatory efforts remain in progress.
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