The U.K. government has proposed new crypto regulations to crack down on scams and risky firms. Treasury officials and Chancellor Rachel Reeves announced that crypto exchanges, dealers, and agents will now face strict rules. The move follows a sharp rise in cryptocurrency ownership across the country. Officials stressed that Britain remains open for business but closed to fraud and instability. Industry players like CryptoUK welcomed the move, but they still want clearer rules for areas like DeFi and liquid staking.
New U.K. Crypto Draft Lays Down Strict Standards
The United Kingdom dropped a detailed 27-page crypto regulation draft into Parliament. This new document aims to regulate crypto activities like trading, stablecoin issuance, custody services, and staking operations. Companies must now get approval from the Financial Conduct Authority (FCA) before they can operate legally. The draft also defines “qualifying cryptoassets” and introduces a category for stablecoins tied to traditional currencies. Crypto custodians will face fresh rules too, preventing them from putting customers’ assets at risk. The U.K. Treasury is gathering public feedback until May 23, 2025.
U.K. Teams Up with U.S. to Boost Global Cryptocurrency Adoption
The U.K. isn’t going it alone. Finance Minister Rachel Reeves announced plans to collaborate closely with the U.S. on crypto regulation. Speaking at a fintech event, Reeves said international cooperation is key for responsible cryptocurrency adoption. She met recently with U.S. Treasury Secretary Scott Bessent to discuss a possible crypto trade deal. This shows that crypto regulation is now a major part of international economic strategy. Deeper U.K.-U.S. ties could make crypto safer and more accessible worldwide.
U.K. Wants Crypto Rules That Support Business, Not Block It
The U.K. Treasury says the goal is to protect consumers without stifling innovation. Crypto firms with British customers will have to follow rules similar to traditional finance firms. This means better transparency, stronger consumer protection, and tougher operational standards. Reeves emphasized that regulation should help businesses grow, not drag them down. However, the FCA’s strict stance has drawn criticism from parts of the crypto industry in the past. The new rules could offer a better balance between security and growth.
Crypto Adoption Is Rising Fast
More people in the U.K. are buying crypto than ever before. Today, around 12% of adults own some form of cryptocurrency, up from just 4% in 2021. This growing interest makes proper regulation even more urgent. Without clear rules, scams and fraud could hurt adoption rates and damage trust. Industry leaders believe that a strong but fair regulatory system could make the U.K. a true global hub for cryptocurrency. The U.K. seems ready to take that lead, with the U.S. right by its side.
