The UK government has unveiled its final rules to regulate the cryptocurrency sector, stating regulations are planning to be phased in as fiat-backed stablecoin regulation is introduced in early 2024.

Additionally, an update on Monday showed other crypto areas, including algorithmic stablecoins, will follow as activities such as lending and trading come under conventional financial regulation.

The latest plans are in line with a policy set out by then chancellor Rishi Sunak in April 2022 to make Britain a crypto asset hub, CoinDesk reports, and will likely be championed by the industry.

Treasury Minister Andrew Griffith said he was “very pleased to present these final proposals for crypto asset regulation in the UK,” and the finalised framework would mean “the UK is the obvious choice for starting and scaling a crypto asset business.”

The Treasury published a crypto consultation back in February, which closed in April. Parliament subsequently passed the Financial Services and Markets Act 2023 in June, enabling crypto to be treated as a regulated activity.

The UK government has already stated it wants to bring crypto within the traditional financial service regulation fold, but the Treasury Minister has amended certain proposals to explain how crypto assets already considered traditional financial instruments are treated, along with NFTs (non-fungible tokens).

“The proposed regime does not intend to capture activities relating to crypto assets, which are specified investments that are already regulated,” such as traditional securities, according to the government document, which added that unique NFTs “should not be subject to financial services regulation,” as they are similar to collectables or artwork.

The ministry added: “The government’s proposed measures have been informed by recent market events – including the failure of FTX – which reinforce the case for effective regulation and sector engagement.”