This article briefly:
•British Finance Minister Afolami said that the British government plans to formulate new stablecoin cryptocurrency rules within 6 months before the election.
•The FCA has been cracking down on cryptocurrency companies, issuing 450 warnings for advertising breaches in the fourth quarter of 2023.
•Afolami urges young people to invest in stocks like NatWest amid strict cryptocurrency regulations.
The UK government appears to be considering an ambitious six-month timeline for implementing new regulations governing stablecoins and crypto-asset staking services.
The move comes as the country prepares for the upcoming election, with lawmakers feeling the heat to come up with concrete proposals.
UK ramps up enthusiasm for stablecoins and cryptocurrency staking
Finance Minister for Economic Affairs Bim Afolami highlighted the government’s dedication to the cause at an industry event in London.
"We've been very clear that we want to get these things done as quickly as possible. I think in the next six months, these things are doable."
This comes after the Treasury Department pledged last October to provide greater clarity on specific cryptocurrency sectors by 2024. The move is seen as a response to previous consultations on fiat-backed stablecoins and the enactment of the wider Financial Services and Markets Act.
Elliptic expects these new rules to subject fiat-backed stablecoins and their issuers to existing payments laws. This would give the UK financial regulator the power to determine the types of assets that back stablecoins.
Elliptic said in a January 2024 report:
“In the UK, the Bank of England will continue to advance its work to address the risk of systemic payment stablecoins. At the same time, given the size and scale of financial markets, stablecoins are likely to have a wider impact on financial markets.”
At the same time, the UK’s Financial Conduct Authority (FCA) has been increasing its supervision of cryptocurrency companies. In the last quarter of 2023 alone, the FCA issued 450 consumer warnings against cryptocurrency companies for advertising violations.
This rigorous approach includes implementing the S21 license. Although subject to strict regulations, this special license allows authorized companies to approve cryptocurrency advertising. In its stance, the MFCA highlighted its commitment to ensuring that investors are not misled or deceived by cryptocurrency advertising.
Invest in the UK
Alongside these regulatory advances, Afolami is also advocating for a major shift in investor habits, especially those of young people. He urged young investors to move away from the lure of cryptocurrency instability and invest in more stable assets such as shares of domestic giants such as NatWest Bank.
“That said, that’s one of the things I’d like to change; not just own crypto, but own shares in NAB, not just own crypto, invest and deposit through automatic deposits, invest in the UK.”
The call for a balanced approach to investing comes at a critical time. Afolami’s strategy aims to reduce risk for investors and revitalise UK financial markets amid challenges facing the UK equity market, with the number of liquid stocks shrinking significantly, a trend also seen in global markets.
This transition period requires investors to make informed decisions as the UK navigates these regulatory and market dynamics. The government’s swift action in regulating cryptocurrencies, coupled with a push to diversify investment, illustrates a critical moment in shaping the future direction of financial regulation in the UK. #质押监管 #英国
