• The UK plans new laws to control crypto firms and protect users with rules like those in regular finance.

  • The UK and US will work together to create safe rules for crypto and support global cooperation.

  • Crypto firms must follow clear steps to stay open, protect users, and stop illegal activity in the UK.

The United Kingdom has shared a new draft law to regulate cryptocurrencies. The law will create rules for crypto businesses. It was announced on Tuesday at a fintech event in London.

https://twitter.com/WatcherGuru/status/1917251398208512029

The draft sets out how crypto firms must follow clear legal rules. These rules include protecting customers and being open about how they work. The new plan will treat crypto firms like regular financial companies.

Crypto exchanges, brokers, and agents will need to follow these new rules. They must show strong security, honest practices, and clear operations. The goal is to protect users and stop bad actors from harming the market.

UK and US to Work Together on Crypto Rules

The UK also plans to work closely with the United States. UK Finance Minister Rachel Reeves spoke about the plan at a major event. She said the UK wants to lead in crypto and will work with global partners.

Reeves had a meeting with US Treasury Secretary Scott Bessent last week. They talked about how to work together on crypto laws. This shows that digital assets are now a key part of global trade talks.

In the past, Reeves said trade with the European Union was a top goal. However, this new step shows the UK is also looking to the US for partnership. The move could help create shared rules for the crypto market.

Crypto Firms Must Follow Clear Rules

The new law will bring all crypto firms under strong control. These firms will have to follow rules on how they treat users. They must also show how they handle risk and report their actions.

The UK Treasury said the plan will support growth while fighting crime. It will also make sure crypto is safe for users. Crypto companies must now follow the same rules as banks and other finance firms.

The Financial Conduct Authority will handle the new rules. It already watches crypto firms for money laundering. Some firms have said the current rules are slow and hard to pass.

This new law hopes to fix those problems. It should make the system faster and clearer. At the same time, it will keep users safe and stop illegal use.

The law wants to support new ideas while protecting the public. The recent move shows that the UK is ready to become a safe place for crypto. Other countries are also making new rules. The UK now joins them with a clear plan for the future.