UK prepares to update crypto market rules in 2025

UK Economy Minister Tulip Siddiq has announced plans to completely revamp the regulatory framework for the cryptocurrency market by 2025. Speaking at the City & Financial Global Tokenisation Market Summit, she emphasized that the new regulatory structure, developed in collaboration with crypto companies, aims to eliminate legal ambiguities and establish clearer rules for digital assets.

The implementation of updated regulations, including those for stablecoins, is set to begin as early as next year. “We intend to involve companies in drafting legal provisions for the regulation of cryptocurrency assets, including stablecoins,” said the minister, underscoring the importance of creating a safe and stable environment for the development of the crypto industry.

New Rules for Stablecoins

The UK government is placing a particular focus on regulating stablecoins, including their use as payment instruments. The new framework will introduce strict controls to ensure the stable pegging of such tokens to fiat currencies, which is expected to boost trust in stablecoins among users and businesses.

The minister also noted that these changes aim to create a safe and competitive crypto industry, aligning with the objectives outlined in the Financial Services and Markets Act introduced by the previous government.

Staking: No Longer an Investment Scheme

One of the key aspects of the reform will be the classification of staking. Tulip Siddiq confirmed that staking operations will no longer be treated as investment schemes. This change aims to eliminate existing legal uncertainty and reduce pressure on crypto market participants.

Meanwhile, the government continues to face criticism from crypto companies accusing the Financial Conduct Authority (FCA) of adopting an “overly strict” approach to regulating digital assets and registering new market entrants. However, government officials emphasize that the new rules are designed to ensure the long-term growth and stability of the cryptocurrency industry in the country.