The UK is stepping up its crypto game — with clear rules, bold reforms, and global collaboration. At the UK Fintech Week summit, the Treasury and Chancellor of the Exchequer, Rachel Reeves, have introduced draft rules to regulate cryptoassets, aiming to protect people from scams and shady firms. Here’s what the rules mandate?
Crypto Firms Face Stricter Standards
Under these new rules, crypto platforms dealing with assets like Bitcoin and Ethereum will now fall under stricter regulations. This includes exchanges, dealers, and agents, who will be required to follow the same high standards as traditional finance.
That means crypto platforms serving UK customers must follow strict transparency, consumer protection, and operational stability rules. The move is part of the UK’s “Plan for Change,” a strategy to grow financial services while reducing risk.
With crypto ownership in the UK tripling from 4% in 2021 to 12% today, regulators say it’s time to step in. Too many people have been left exposed to risky platforms and scams. The new rules aim to stop that, making sure users are better protected from day one.
Meanwhile, Reeves made it clear: the UK wants to be the best place to build in crypto, but the worst place for scammers.
UK and US Explore Joint Innovation
In addition to new local rules, the UK is also teaming up with the U.S. through the UK-U.S. Financial Regulatory Working Group. The two countries are exploring joint ways to promote safe crypto growth.
One exciting idea on the table is a “transatlantic sandbox,” a shared testing space for digital securities, as proposed by SEC Commissioner Hester Peirce.
Big Moves Coming in July
Reeves confirmed that the UK will release its first Financial Services Growth Strategy on July 15, with fintech named a top priority.
The government also plans to finalize and roll out full crypto legislation by the end of 2025 after more discussions with industry players.
Credit: Source link
