While preparing a comprehensive bill to regulate cryptocurrencies, the UK aims to increase cooperation with the US.
UK Treasury Secretary Rachel Reeves announced a new regulatory framework covering digital assets. This draft, which aims for tighter oversight and transparency for cryptocurrency exchanges, intermediaries, and service providers in the country, aims to position the UK as a global leader in digital assets.
With the new regulation, firms providing cryptocurrency services will need to comply with the same standards as traditional financial institutions regarding transparency, consumer protection, and operational resilience. According to the UK Treasury, this step will "eliminate malicious actors while supporting legitimate innovation." Criticism from the industry that the financial services regulator FCA has been too strict with some crypto companies remains valid.
Joint steps will be taken with the US
Rachel Reeves announced during her speech at the Innovate Finance summit held in London that there will be closer cooperation with the US on crypto regulations. This partnership will ensure the responsible adoption of digital assets. Noting that "international cooperation is essential for the UK to lead in the field of digital assets," Reeves shared this vision last week in a meeting with US Treasury Secretary Scott Bessent.
The message from the UK is clear: regulation should support, not obstruct.
Reeves emphasized that "regulations should exist to support, not hinder, businesses," highlighting that the UK's approach is not hostile to crypto but rather opportunity-focused. The minister also stated that they wish to strengthen business relations with the EU, believing these steps could make the UK a hub for digital asset innovation.
This draft law for the crypto industry is both a confidence-building measure and a roadmap for international compliance.