🇬🇧 The United Kingdom enters the competition with Dubai 🇦🇪 and Singapore 🇸🇬 to become a global hub for digital currencies

🎙️ The British government announced a draft legislation aimed at regulating the digital currency market to enhance its position as a global crypto hub.

🔍 Details:

🎯 Objective: Support digital innovation while providing strong protection for investors.

💥 Scope: Includes wallet providers, trading platforms, stablecoins, and non-fungible tokens (NFTs).

⬅️ Approach: Instead of imposing strict regulations, the government calls for the involvement of developers, businesses, and investors to gather their opinions.

🛠️ Regulatory steps taken:

1️⃣ Publication of draft legislation: On April 29, 2025, the British Treasury published a draft legislation known as the “Digital Assets Order,” introducing six new regulated activities, including operating digital currency trading platforms, custody services, and the issuance and dealing in stablecoins.

2️⃣ Definition of qualifying digital assets: “Qualifying stablecoins” are defined as specific investments under the Financial Services and Markets Act 2000, meaning that activities related to them will require authorization from the Financial Conduct Authority (FCA).

3️⃣ Geographic scope expansion: Non-British companies providing services to customers in the UK will need to obtain authorization from the Financial Conduct Authority, expanding the regulatory scope to include foreign companies targeting the British market.

4️⃣ Regulation of stablecoins: Sterling-backed stablecoins will be treated as securities, requiring them to comply with disclosure requirements similar to those imposed on traditional securities.

5️⃣ Transitional period: The new regulatory framework will be implemented in phases, with companies able to start submitting authorization applications from late 2025, and the system is expected to be fully operational in the second quarter of 2026.

📌 Why this is important👇