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Breaking News: Fed Lowers Rates By 25bps: How Bitcoin And Crypto Prices Responded And What's Next
crypto

Crypto Staking, Stablecoins In Focus As UK Prepares For Early 2025 Regulations

Ash Tiwari
by Ash Tiwari
9 months ago
·
Posted in Crypto regulation
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

According to a Bloomberg report, the Keir Starmer-led Labour government is set to unveil comprehensive cryptocurrency regulations in early 2025. The announcement is expected at London’s City & Financial Global Tokenisation Summit. 

Crypto Regulations Are Coming To The UK

A senior minister has confirmed that to align with digital asset regulatory developments in Europe and the US, the UK government is preparing to draft a regulatory framework for digital assets early next year.

Related Reading: Tether’s USDT Recognized As Property By UK Court – What This Means For The Stablecoin

Speaking at a conference on November 21, Economic Secretary to the Treasury Tulip Siddiq emphasized the government’s focus on regulating stablecoins and crypto staking services.

For the uninitiated, stablecoins are digital assets typically pegged to the value of fiat currencies like the US dollar, Euro, and others. Crypto staking services, on the other hand, allow investors to “stake” or lock up their crypto assets on blockchain-powered protocols to earn monetary rewards through digital tokens.

The previous Conservative government, led by Rishi Sunak, had planned to introduce cryptocurrency regulations earlier this year. However, the general election and subsequent change in leadership delayed the rollout.

The new regulations are expected to significantly impact the treatment of stablecoins and crypto staking services. For example, Siddiq noted that stablecoins would no longer fall under the UK’s existing payment services regulation, as their current use cases differ from traditional payment systems.

UK industry leaders have been advocating for crypto staking services to be classified as a technology service rather than an investment scheme. Treating staking as an investment scheme subjects it to stringent financial regulations, which many argue are overly restrictive. The Labour government appears receptive to these concerns. Siddiq stated:

It doesn’t make sense for staking services to have this treatment and the government intends to proceed with removing this legal uncertainty accordingly.

Trump’s Win Hastens UK’s Regulatory Plans

The victory of pro-crypto US Republican presidential candidate Donald Trump may have accelerated the UK’s timeline for rolling out digital asset regulations. A favorable regulatory environment in the US could potentially cause crypto businesses to migrate from the UK – a situation the struggling UK economy wants to avoid.

Related Reading: US Loses Ground: Asia Tops Crypto Developer Share By Region – Report

It will be particularly challenging for the UK government to create a conducive digital asset regulatory environment in the country, considering the country’s hostile stance toward digital assets in the past. 

While the UK works on its digital asset regulations, countries like El Salvador and Bhutan are already reaping the benefits of a proactive, pro-crypto stance. At press time, Bitcoin (BTC) trades at $98,286, up 2% in the past 24 hours.

bitcoin
BTC trades at $98,286 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Chart from TradingView.com
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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