As crypto adoption surges in the UK, the government
has introduced draft legislation seeking to tighten oversight of crypto firms
while keeping Britain attractive to investors and innovators.
The announcement, made by Chancellor Rachel Reeves at
a London fintech summit, marks a turning point in how the UK approaches digital
assets like Bitcoin and Ethereum.
“Through our Plan for Change, we are making Britain
the best place in the world to innovate and the safest place for consumers.
Robust rules around crypto will boost investor confidence, support the growth
of fintech, and protect people across the UK,” Rachel Reeves, Chancellor of the
Exchequer, commented.
A New Regulatory Era for Crypto in the UK
With ownership of crypto assets among UK adults rising
from 4% in 2021 to 12% in 2024, the government sees an urgent need to protect
consumers from fraud and instability.
Under the proposed rules, crypto exchanges, dealers,
and agents serving UK customers would need to meet the standards on
transparency, consumer protection, and operational resilience, aligning them
more closely with traditional financial institutions.
Rachel Reeves, Source: LinkedIn
The Financial Conduct Authority’s research has also
highlighted the risks. As more people get involved in crypto, many remain
unaware of the dangers, and some have already fallen victim to scams. The
proposed legislation places consumer safety at the heart of crypto regulation.
In parallel, Reeves disclosed that the UK and the U.S. are
engaging more closely on digital assets. The two countries will continue talks
through the UK–U.S. Financial Regulatory Working Group.
They are also exploring deeper collaboration on
digital securities, including a proposed “transatlantic sandbox” championed by
U.S. SEC Commissioner Hester Peirce.
Fintech Growth Strategy
That sandbox could allow innovators on both sides of
the Atlantic to test products under aligned, cross-border regulatory conditions, potentially transforming fintech’s global development.
Beyond crypto, the government plans to launch the
Financial Services Growth and Competitiveness Strategy on July 15. It will include measures to support long-term growth
in financial services, with fintech highlighted as a priority. The final
version of the crypto legislation will be released after the industry responds
to the draft.
The move underscores the UK’s ambition to become a
global hub for digital asset technologies while enforcing guardrails to prevent
abuse.
As crypto adoption surges in the UK, the government
has introduced draft legislation seeking to tighten oversight of crypto firms
while keeping Britain attractive to investors and innovators.
The announcement, made by Chancellor Rachel Reeves at
a London fintech summit, marks a turning point in how the UK approaches digital
assets like Bitcoin and Ethereum.
“Through our Plan for Change, we are making Britain
the best place in the world to innovate and the safest place for consumers.
Robust rules around crypto will boost investor confidence, support the growth
of fintech, and protect people across the UK,” Rachel Reeves, Chancellor of the
Exchequer, commented.
A New Regulatory Era for Crypto in the UK
With ownership of crypto assets among UK adults rising
from 4% in 2021 to 12% in 2024, the government sees an urgent need to protect
consumers from fraud and instability.
Under the proposed rules, crypto exchanges, dealers,
and agents serving UK customers would need to meet the standards on
transparency, consumer protection, and operational resilience, aligning them
more closely with traditional financial institutions.
Rachel Reeves, Source: LinkedIn
The Financial Conduct Authority’s research has also
highlighted the risks. As more people get involved in crypto, many remain
unaware of the dangers, and some have already fallen victim to scams. The
proposed legislation places consumer safety at the heart of crypto regulation.
In parallel, Reeves disclosed that the UK and the U.S. are
engaging more closely on digital assets. The two countries will continue talks
through the UK–U.S. Financial Regulatory Working Group.
They are also exploring deeper collaboration on
digital securities, including a proposed “transatlantic sandbox” championed by
U.S. SEC Commissioner Hester Peirce.
Fintech Growth Strategy
That sandbox could allow innovators on both sides of
the Atlantic to test products under aligned, cross-border regulatory conditions, potentially transforming fintech’s global development.
Beyond crypto, the government plans to launch the
Financial Services Growth and Competitiveness Strategy on July 15. It will include measures to support long-term growth
in financial services, with fintech highlighted as a priority. The final
version of the crypto legislation will be released after the industry responds
to the draft.
The move underscores the UK’s ambition to become a
global hub for digital asset technologies while enforcing guardrails to prevent
abuse.
GIPHY App Key not set. Please check settings