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UK Poised to Become Crypto Leader with New Stablecoin and Crypto Regulations by July 2024

UK Poised to Become Crypto Leader with New Stablecoin and Crypto Regulations by July 2024
UK Poised to Become Crypto Leader with New Stablecoin and Crypto Regulations by July 2024

The United Kingdom is on the cusp of becoming a global leader in cryptocurrency regulation. With the rapid rise of the crypto market, the UK government is set to unveil a comprehensive regulatory framework by July 2024.

This legislation aims to foster a vibrant and secure crypto environment, attracting businesses and investors while protecting consumers.

Thriving UK Crypto Market:

  • Market Growth: The UK boasts one of the fastest-growing crypto markets globally, surpassing Germany and the US.
  • User Base: Over 3 million UK residents actively participate in the crypto space, holding an estimated $3.72 billion in crypto assets.
  • Industry Revenue: The UK’s crypto industry generated an impressive $1.9 billion in revenue in 2023 and is projected to reach $2.53 billion in 2024.

Reasons for Regulation:

Expected Regulations:

  • Stablecoin Issuer Licensing: Issuers will require licenses to mitigate potential financial instability of stablecoins.
  • Tax Clarity on Staking: Regulations will provide clear guidelines on the tax implications of cryptocurrency staking.
  • Exchange Platform Scrutiny: Cryptocurrency exchanges will likely face stricter KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols to combat criminal activity.
  • Robust Security for Custodians: Custody service providers will be held to stricter security standards to safeguard user assets from cyber threats.

Related Post: OKX HK Withdraws VASP License Application: What It Means for Hong Kong Users

The UK’s Journey to Crypto Regulation:

  • Awareness Surge: Between 2019 and 2022, adult awareness of cryptocurrencies in the UK skyrocketed from 42% to 91%.
  • Government’s Crypto Embrace: In early 2022, the UK government announced plans to transform the UK into a global crypto hub, supporting crypto businesses and innovation.
  • Regulatory Framework Development: February 2023 saw the FCA and BoE launch consultations on a stablecoin regulatory framework, laying the groundwork for broader crypto regulations.
  • Law Commission Recommendations: July 2023 witnessed a landmark move by the Law Commission, proposing four key recommendations to recognize cryptocurrencies and stablecoins as regulated financial activities.

Potential Impact of Upcoming General Elections:

  • Labour Party Uncertainty: The Labour Party, a potential frontrunner in the upcoming elections, has expressed reservations about the proposed crypto regulations.
  • Regulatory Delays/Revisions: A Labour Party victory could lead to delays or revisions in the regulatory framework, potentially impacting the UK’s competitiveness in the global crypto space.


The impending crypto regulations position the UK as a leader in crypto innovation and security. However, the outcome of the elections casts a shadow on the timeline and potential changes to the regulations. Regardless, the UK’s commitment to regulating this dynamic industry bodes well for the future of crypto in the region.


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