The United Kingdom plans to enact new legislation to regulate stablecoins and crypto asset management by mid-2024, according to Economic Secretary Bim Afolami. This announcement was made during the Innovate Finance Global Summit, reflecting the government's ambition to establish the UK as a key center for crypto asset operations.

Last year, the UK passed significant financial market legislation, paving the way for the regulation of cryptocurrencies and stablecoins as financial activities. The upcoming law will encompass various crypto activities, including exchange operations and asset management for customers.

Regulation and oversight of this sector will fall under the jurisdiction of the Financial Conduct Authority (FCA) and the Bank of England. Discussions on the proposed legal framework for stablecoins began between these bodies in early 2023. It was decided that the Bank of England would supervise stablecoin providers with significant systemic impact, while the FCA would oversee the broader crypto industry.

In February, Afolami hinted at further stablecoin legislation and expressed the government's desire to implement it within six months. The importance of crypto regulation has been emphasized by the current Conservative government, which has been exploring additional regulatory measures. However, there is uncertainty about the future of these regulatory plans, given the possibility of an upcoming election that could lead to a change in government. The Labour party is currently favored to win the election.