UK Government Proposes New Crypto Rules

The UK Treasury and Chancellor of the Exchequer Rachel Reeves have introduced proposed cryptocurrency regulations designed to “support[ing] innovation while cracking down on fraudsters.”

In a notice published on April 29, the UK government revealed draft legislation for digital assets like Bitcoin and Ethereum.

The new rules would bring “crypto exchanges, dealers and agents” under stricter oversight, addressing concerns that many UK residents have been “exposed to risky firms and scams.”

The announcement also referenced discussions with U.S. officials, including SEC Commissioner Hester Peirce’s proposal for a collaborative US-UK regulatory sandbox.

“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” the notice stated, adding:

“The government will bring forward final cryptoasset legislation at the earliest opportunity, following engagement on the draft provisions with industry.”

The Treasury and Reeves emphasized that the UK remains committed to becoming a “global hub for digital asset technologies,” echoing initiatives launched under the previous Conservative government.

A 2023 consultation paper had already proposed that a broad range of crypto-related activities—including the issuance and trading of stablecoins—be brought in line with UK financial regulations.

In a statement shared with Cointelegraph, a spokesperson for CryptoUK, the UK’s self-regulatory crypto trade group, described the new announcement as “very much welcomed and a big victory” for the digital asset industry.

Still, the spokesperson noted that more regulatory clarity is needed, particularly in areas like liquid staking and decentralized finance (DeFi).

“Though there has been good regulatory progress from the [Financial Conduct Authority], which published its crypto roadmap late last year, the UK government first committed to becoming a global crypto hub in 2022,” the spokesperson said, adding:

“Progress has been slow since then, but as the Chancellor has recognised, the mainstreaming of the industry has continued, with now 12% of all UK adults owning some sort of crypto, up from 4% in 2021.”

The Financial Conduct Authority (FCA) intends to finalize its crypto regulations in 2026, which would establish the foundation for a full UK crypto regulatory regime.

The country’s path toward clearer rules may follow the lead of the European Union, which began implementing its Markets in Crypto-Assets (MiCA) framework in December.

Sources:

https://cointelegraph.com/news/uk-government-crypto-rules-consumer-protection

https://www.gov.uk/government/news/new-cryptoasset-rules-to-drive-growth-and-protect-consumers