UK to introduce stablecoin laws in coming months

The anticipated regulations aim to leverage stablecoins for faster payments and financial innovation, while addressing potential risks.

UK authorities froze $7.7 million worth of illicit crypto in one year, focusing on funds tied to criminal activities such as money laundering.

The UK is expected to introduce laws regulating stablecoins within the next few months, according to Circle’s global head of policy, Dante Disparte. Stablecoin usage has surged recently, with the market reaching a record high of nearly $170 billion in Q3 2024, pushing regulators to act.

While the European Union has already implemented its Markets in Crypto-Assets regulation, the UK has been slower to create specific rules. However, recent developments, including a proposal to classify digital assets as personal property, suggest progress is being made.

With clearer regulations, the UK hopes to capitalise on the potential benefits of stablecoins, such as faster payments and innovation in financial services, while addressing risks linked to these digital assets.