The UK government has unveiled draft legislation aimed at integrating crypto firms into the regulatory framework.
Introduced by Chancellor Rachel Reeves, these rules are intended to foster innovation in the sector, enhance investor confidence, and combat fraudulent activities. Currently, approximately 12% of UK adults own or have owned cryptocurrencies, a significant increase from just 4% in 2021. However, the existing regulatory landscape has not kept pace, leaving consumers vulnerable to risky companies and scams.
The proposed regulations will bring crypto exchanges, dealers, and agents under regulatory oversight. Firms engaging with UK customers will be required to adhere to clear standards regarding transparency, consumer protection, and operational resilience—matching the requirements for traditional financial institutions.
Additionally, Chancellor Reeves announced that the UK and the US will utilize the upcoming UK-US Financial Regulatory Working Group to promote the responsible use and growth of digital assets. Reeves stated, “Robust rules around crypto will boost investor confidence, support the growth of Fintech, and protect people across the UK.”
The plans have been largely welcomed by the sector. A representative from the trade association CryptoUK expressed support, emphasizing that Reeves’ commitment to establishing clearer regulations for the digital assets industry marks a significant win for members who have worked diligently over the past seven years to position the UK as a leader in the crypto space.