UK announces new regulations for cryptoassets to bolster investor confidence and protect consumers. Following a Fintech Week summit, the Chancellor revealed draft legislation aimed at regulating exchanges and dealers. Around 12% of UK adults own crypto, increasing the need for clear standards to combat fraud. The UK is also engaging with US authorities to promote responsible growth in digital assets.
In a significant move aimed at cultivating growth while safeguarding consumers, the UK government has announced new regulations for cryptoassets. This follows a recent summit during UK Fintech Week where the Chancellor unveiled draft legislation intended to bolster investor confidence. With approximately 12% of UK adults now owning or having owned crypto, the rules are deemed essential to shield individuals from risky firms and scams.
The fresh guidelines will bring crypto exchanges, dealers, and agents into the regulatory fold. This initiative is designed to target fraudsters while encouraging responsible innovation among legitimate firms. Importantly, companies servicing UK crypto customers must now adhere to clear standards regarding transparency, consumer protection, and operational resilience—paralleling those in traditional finance sectors.
Additionally, discussions with the United States are in progress as both nations aim to promote the sensible use and growth of digital assets. The Chancellor indicated that the upcoming UK-U.S. Financial Regulatory Working Group will focus on this collaborative effort. Previous talks with U.S. Treasury Secretary Scott Bessent highlighted shared opportunities, especially regarding digital securities.
Rachel Reeves, the Chancellor, emphasised the necessity for robust rules to not only boost investor confidence but also to fortify Fintech’s growth while safeguarding consumers. “Today’s announcement clearly states that Britain is open for business but impenetrable to fraud and instability,” she remarked.
In line with this initiative, the government plans to unveil the inaugural Financial Services Growth and Competitiveness Strategy on 15 July, alongside her Mansion House address. This will further support the financial services sector’s long-term ambitions, pinpointing Fintech as a crucial area for development.
While the government has vowed to expedite the finalisation of cryptoasset legislation, it will first engage with industry stakeholders regarding the draft proposals. Initiatives from the 2023 Treasury consultation, which advocated for a wider inclusion of crypto activities in the UK’s regulatory framework, reflect this commitment. The overarching goal remains to position the UK as a premier hub for digital asset technologies, reinforcing the ambitions laid out in the Plan for Change.
Citizens are invited to access more detailed information about the proposals through the draft legislation and accompanying policy explainer documents.
