UK to announce cryptocurrency and stablecoin regulation in early 2025

The UK Labour government will unveil a comprehensive cryptocurrency regulatory framework in early 2025, aimed at simplifying regulation and addressing key areas such as stablecoins and staking. The UK plans to release its cryptocurrency framework next year, reflecting a global regulatory race in the industry, with other jurisdictions such as the EU also pursuing strategies to attract innovation and economic opportunities. The UK government revealed plans to introduce a unified regulatory framework for the cryptocurrency industry by early 2025 at the Global Token Summit in the City of London. As part of the new framework, stablecoins will no longer be subject to the UK's existing payment services rules. The government believes these regulations are not suitable for their current use cases. This shift aims to align the UK's approach with the evolving nature of stablecoins, which are typically pegged to assets like the US dollar to maintain stability.