The UK government has introduced draft laws to regulate the cryptocurrency industry. The goal is to make the UK a global leader in financial innovation while keeping people safe from scams and risky companies.
The new laws, introduced by Chancellor Rachel Reeves at a major fintech conference in London, represent a significant step toward formally regulating cryptocurrency exchanges, dealers, and agents.
With about 12% of UK adults now owning or having owned cryptocurrencies like Bitcoin or Ethereum, up from just 4% in 2021, the government says it’s time to ensure users are better protected. Too often, people have been exposed to scams or risky firms.
The new regulations would require crypto companies that deal with UK consumers to follow strong transparency, consumer protection, and corporate conduct criteria, similar to those imposed on banks and other financial institutions.
The proposed regulations will also include rules for running a crypto exchange, issuing stablecoins, and preventing market abuse. The draft rules are open to feedback from the industry before final laws are introduced soon.
The UK is also working closely with the US to promote the responsible use and growth of digital assets. Talks between Chancellor Reeves and US Treasury Secretary Scott Bessent in Washington explored joint efforts to help businesses innovate, including the idea of a transatlantic regulatory “sandbox” for digital securities.
Reeves said these steps are part of the government’s “Plan for Change,” which aims to make the UK the best and safest place for financial innovation. She also announced that a broader Financial Services Growth and Competitiveness Strategy will be released on July 15, with fintech marked as a top priority sector for long-term growth.
