UK Crypto Framework 2025: Stablecoins and Staking Get New Rules!

The UK is set to introduce a new crypto-regulatory framework by 2025, marking a major shift in how digital assets are governed. The announcement was made at the City & Financial Global Tokenisation Summit in London, with the Labour government stressing its aim to balance innovation with safety in the growing crypto market.

What does this mean for you?

A New Approach to Crypto Regulations

According to a Bloomberg report, the upcoming framework will bring significant changes to how stablecoins and staking are regulated. Right now, stablecoins are treated under payment services rules, but these don’t match their role of maintaining a stable value tied to fiat currencies like the US dollar. The new rules will create separate, more fitting regulations for stablecoins, helping them grow while ensuring stability.

For staking, the government plans to clear up legal confusion. Staking, where users lock up tokens to support blockchain operations and earn rewards, is often seen as a collective investment scheme, which comes with heavy financial regulations. The UK aims to reclassify staking as a technology service, making it easier for the practice to grow without unnecessary red tape.

Why the Timing Is Critical

The UK’s move comes at a key moment. The European Union is about to roll out its Markets in Crypto Assets (MiCA) framework, and the incoming Trump administration in the US has signaled a more crypto-friendly approach. Both regions are moving quickly, and the UK doesn’t want to fall behind in what’s widely seen as the future of finance.

Industry Reaction

Tulip Siddiq, the UK’s Economic Secretary to the Treasury, explained that tackling both stablecoins and staking regulations together makes sense, especially after delays caused by the general election. By creating a single, clear framework, the UK hopes to encourage innovation while making sure the system is secure.

Paybis founder Innokenty Isers praised the UK’s approach, stressing how important it is for the country to keep up.

“If the UK doesn’t catch up with the EU’s MiCA framework or the pro-crypto sentiment from Trump’s election, it risks missing out on massive financial opportunities,”

Dante Disparte, Circle’s global head of policy, added that he expects the UK to introduce stablecoin regulations within months, not years. “We’ll be waiting for it,” he said, as businesses eagerly anticipate clearer rules.

Will the UK keep up with the current trend to leverage this trillion-dollar industry? We will see!