The UK government is set to launch long-anticipated cryptocurrency regulations aimed at enhancing the country’s appeal as a digital asset hub. Focused on stablecoins and staking, the new framework seeks to prevent startups from moving operations to the United States, where President Donald Trump’s pro-crypto stance has made the environment increasingly attractive.
Amid frustration in the UK’s crypto community over regulatory delays, industry advocates have voiced urgency for change. “Long, long overdue. UK FCA is years behind on this,” Shaun Edmondson, a crypto enthusiast wrote in a Nov. 14 social media post on X.
The Treasury’s regulatory plans specifically target the stablecoin sector, with new bills aimed at closing gaps in oversight and promoting stability. According to Bloomberg, the legislation will outline clearer guidelines for stablecoin providers and include regulatory exemptions for certain services, such as staking and custodial wallets. These measures are expected to foster a favorable environment for growth within the UK crypto ecosystem while enhancing investor protections.
Additionally, the UK is advancing the Property Bill, which would officially recognize digital assets, including cryptocurrencies and NFTs, as legally protected personal property. By addressing challenges like fraud and asset disputes, the bill seeks to create a secure legal foundation for digital asset investments, attracting both local and international investors to the UK’s digital markets.
Finder’s recent report underscores the significance of these regulatory developments, with 13% of the UK population—an estimated 7 million people—owning cryptocurrency. Over half of these investors hold Bitcoin, with a third invested in Ethereum. The UK crypto market is projected to reach £2.9 billion ($3.77 billion) by 2027, highlighting the potential benefits of a supportive regulatory environment.