The UK government unveiled proposed legislation on Tuesday designed to establish oversight for cryptocurrencies such as Bitcoin and Ethereum, following similar regulatory steps recently taken by the European Union.
The Treasury stated that the rules will subject crypto exchanges, brokers, and intermediaries to regulatory scrutiny, aiming to “combat illicit activities while fostering lawful innovation.”
Crypto businesses serving UK customers must adhere to standards mirroring traditional finance, including requirements for transparency, consumer safeguards, and operational reliability, the ministry added.
The move aligns with the EU’s Markets in Crypto-Assets Regulation (MiCA), enacted in December 2023. However, UK Finance Minister Rachel Reeves emphasized collaboration with the United States, asserting that “regulation should empower, not hinder, business.”
Speaking at a London fintech conference, she highlighted the importance of global coordination, noting recent talks with US Treasury Secretary Scott Bessent and plans for further discussions at a UK-US regulatory meeting in June to advance “responsible digital asset innovation.”
Recent data shows cryptocurrency ownership among UK adults has tripled since 2021, now at 12%.
Meanwhile, the UK Financial Conduct Authority (FCA) confirmed in November that detailed crypto regulations will be finalized by 2026.
The government also announced a comprehensive financial services strategy, set to be released on July 15.
WHAT YOU SHOULD KNOW
This is not just crypto regulation—it’s the reconstruction of digital finance. The UK is seeking to claim a leadership role in the next generation of financial services, ensuring innovation thrives within a framework of accountability.
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