UK Unveils Crypto Regulation to Boost Consumer Trust
The UK government has introduced new draft legislation to regulate cryptocurrency exchanges, dealers, and agents. Chancellor Rachel Reeves announced this during UK Fintech Week. the goal is to protect consumers, build investor confidence, and foster innovation in the crypto sector.
Under the new rules, UK crypto firms must meet strict standards for openness, consumer protection, and operational resilience. these standards align wiht those of customary financial institutions. This move responds to the growing popularity of cryptocurrencies in the UK.About 12% of adults now use crypto, up from 4% in 2021.
The legislation also applies to overseas firms serving UK clients. They must get approval from the Financial Conduct Authority.This includes trading platforms, stablecoin issuers, and custody services.
- Crypto asset trading platforms
- Stablecoin issuance
- Custody services
- Staking activities
Keith Grose, head of UK at Coinbase, told CNBC that this is a meaningful year for UK crypto. He believes the UK can lead in crypto regulation.
The UK is also working with the US on digital asset regulation. Chancellor Reeves met with U.S. Treasury Secretary Scott Bessent to discuss collaboration. They talked about a transatlantic regulatory sandbox for digital securities.
This cooperation will continue through the UK–U.S. Financial Regulatory Working Group. The UK aims to become a global hub for fintech and responsible digital asset innovation.
The draft legislation is part of the government’s “Plan for Change” to drive growth in financial services.The final version will follow industry consultation. The UK plans to publish its Financial Services Growth and Competitiveness Strategy on July 15.
These developments show the UK’s effort to balance innovation with consumer protection in the crypto industry.
