London (Parliament Politics Magazine) – The British government is planning to introduce new cryptocurrency rules aimed at responding to Donald Trump’s pro-crypt policies in the United States and attracting global trade to the UK as a competitive hub for digital assets.Â
In response to Donald Trump’s pro-crypto policies in the US, the British government is reportedly focusing on developing new cryptocurrency regulations to enhance its position in the global digital assets market. Trump, who recently returned to the White House committed to turning the US into the world’s crypto capital and drawing interest from traders, the UK is forming its regulatory framework to attract global investment and reassure crypto businesses.Â
To promote domestic growth and retain crypto business, the UK government has made stablecoin legislation a key agenda.
The Treasury has planned two bills to assist stablecoin providers and fill regulatory gaps.
According to a report by Bloomberg, sources familiar with this situation said that the new legislation will offer exemptions from specific services, including staking and custodial wallets.
With the US benefiting from Trump’s crypto-friendly policies, the British government is focusing on offering a stable framework for stablecoin providers to prevent businesses from relocating. As per Bloomberg reports, the Treasury’s new legislation seeks to bring essential regulatory clarity, making Britain a more attractive hub for digital assets companies.
The coming legislation will enable the Financial Conduct Authority (FCA) to create stablecoin regulations. sources indicate that the approach aims to refine staking outside traditional investment schemes and reduce the additional regulatory scrutiny.
Insiders report that the exact timelines are not yet available, the FCA will soon release a roadmap for the phased strategy for regulating stablecoin and other crypto assets.
Further updates are expected on the UK’s digital securities sandbox, a blockchain testing program developed in partnership with the Bank of England.
Dante Disparte, Circle’s head of global policy, suggested in October that the UK would soon pass legislation, mentioning the sector’s recent $170 billion market cap.
Heidi Alexander, the UK Justice Minister, highlighted the importance of protecting owners from fraud and streamlining ownership disputes in her proposal to Parliament last month to classify digital assets as personal property.
The proposal follows the former Conservative government’s plans led by RIshi SUnak, to make Britain a global player in the cryptocurrency market with a focus on stablecoin regulation.
The proposed bill will also support courts in managing complex cases including digital assets, divorce settlements and disputes over cryptocurrency holdings in fraud conflicts.
The British government’s efforts to tackle legal issues related to asset ownership and fraud protection are focused on building a more secure environment for crypto stakeholders. With these initiatives the country aims to establish their position as a key player in the global crypto market, balancing investor protection and growth opportunities.
While global investors are shifting their interest to global assets now especially due to Trump’s recent win in the presidential elections. During his campaign, he made many promises to the crypto market which has attracted investors.
At the biggest Bitcoin conference of the year in Nashville this July, Trump delivered the keynote speech and promised if he returned to the White House he would prevent the federal government from selling its bitcoin.
During his speech, he said, “For too long our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin”.
He added, “If I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future”.