The UK government has released its long-anticipated draft legislation to regulate cryptocurrencies such as Bitcoin and Ethereum, signaling a major step toward integrating digital assets into the country’s formal financial system.
In a statement issued Tuesday, the UK finance ministry said the proposed rules aim to bring crypto exchanges, brokers, and service providers into the regulatory fold. The goal: crack down on bad actors while creating a secure environment that supports legitimate innovation in the crypto space.
Under the new framework, crypto firms serving UK customers will be required to meet strict standards on transparency, consumer protection, and operational resilience—mirroring the obligations already imposed on traditional financial institutions.
This legislative push follows the European Union’s introduction of its own comprehensive regulatory framework, known as the Markets in Crypto-Assets Regulation (MiCA), which came into effect in December.
The UK’s move is widely seen as part of a broader race among global powers to establish clear rules for the fast-evolving digital asset sector.
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Speaking at a London fintech summit, Finance Minister Rachel Reeves emphasized that regulation should act as a catalyst for business growth, not a barrier. She highlighted ongoing discussions with the United States as a key aspect of the UK’s crypto policy direction.
“We’re committed to international cooperation,” Reeves said, noting recent talks with US Treasury Secretary Scott Bessent and plans for further engagement during the UK-US Financial Regulatory Working Group meeting in June.
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With digital assets gaining traction among the British public—12% of UK adults have owned or currently hold cryptocurrencies, a sharp rise from just 4% in 2021—the need for a structured, secure framework has become more urgent.
Looking ahead, the Financial Conduct Authority (FCA) plans to publish a specific regulatory framework for crypto assets by 2026. Meanwhile, a broader national financial services strategy is scheduled for release on July 15, which is expected to detail how the UK plans to modernize its financial sector in the digital age.
The draft legislation marks a pivotal moment for the UK’s crypto ecosystem, as policymakers strive to foster responsible growth while safeguarding consumers and maintaining financial stability.
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