City Minister Tulip Siddiq asserts the permanence of cryptoassets, emphasising the impending regulatory framework.
- Regulatory progress for cryptoassets is ongoing despite recent quiet periods, according to Siddiq.
- The UK government plans to follow previous administration’s crypto regulation proposals.
- Stablecoin regulation remains a complex topic, with distinct approaches outlined by Siddiq.
- The Financial Conduct Authority continues to express caution regarding crypto investments.
City Minister Tulip Siddiq has reinforced the government’s view that cryptoassets are an enduring element of the financial landscape. Speaking at the Tokenisation Summit, she highlighted the ongoing work behind the scenes to establish a regulatory framework for these digital currencies. Despite the seeming lull in regulatory announcements, Siddiq assured stakeholders that development efforts have been consistent.
The government’s approach is poised to implement a comprehensive framework early next year, building on proposals made by a previous administration. These plans aim to establish new regulated activities, such as managing cryptoasset trading platforms and ensuring market integrity. Siddiq confirmed the continuity of these proposals, signalling a unified governmental stance on crypto regulation.
Regarding stablecoins, cryptocurrencies pegged to traditional assets, Siddiq discussed new regulatory activities that aim to maintain their implementation parallel with the broader crypto regulatory regime. While the previous administration proposed integrating stablecoins into UK payment regulations, Siddiq clarified that this would delay implementation due to insufficient proportional use cases at present.
The Financial Conduct Authority (FCA) has maintained its cautionary stance on cryptocurrency investments. It has advised potential investors to be prepared for the possibility of complete financial loss. This warning stems from past incidents, including the 2021 ban on Binance, one of the world’s largest crypto exchanges. Although Binance returned to the UK market through regulatory partnerships, the FCA continues to scrutinise its activities, expressing lingering concerns.
Through assertive planning, the UK government is poised to cement its regulatory framework for cryptoassets, reaffirming their role in modern finance.
