The UK government plans to introduce legislation to regulate stablecoins and crypto staking services, as competition arises due to the US moving quickly on crypto guidelines. The legislation will allow the Financial Conduct Authority (FCA) to consult with the industry on rule-making, and staking services will be reclassified to avoid being treated as a collective investment scheme.
The new ordinances are well-timed as the US is now working on turning itself into the world’s leading crypto hub, creating competition for the UK to retain and attract digital asset businesses. The FCA is expected to outline a timeline for its approach to stablecoin regulation early next year.
