Michaela
UK Chancellor Rachel Reeves has unveiled draft crypto legislation aimed at regulating cryptoassets, seeking to enhance consumer protections and bolster investor confidence in the rapidly growing digital asset sector.
The draft crypto legislation, revealed by Reeves at a major summit in London during UK Fintech Week, responds to the rising levels of cryptocurrency ownership in the UK and the increasing risks posed by scams and bad actors.
“Firms offering services for cryptoassets like Bitcoin and Ethereum will be subject to new, clear rules, boosting investor confidence and driving growth through the Plan for Change,” the HM Treasury stated in an April 29 official press release, outlining the government’s regulatory vision.
The UK’s updated crypto framework will place exchanges, brokers, and other service providers under formal regulatory oversight, aiming to deter illicit activity while fostering responsible innovation. Companies serving UK-based customers must now adhere to strict standards on transparency, consumer safeguards, and operational stability—similar to those already required in traditional financial sectors.
“Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK,” Reeves stated.
Furthermore, research from the UK’s Financial Conduct Authority (FCA) shows that around 12% of UK adults currently own or have previously owned cryptoassets, marking a significant rise from 4% in 2021.
The proposed crypto legislation builds on the UK Treasury’s 2023 consultation, which laid out plans to bring a wide array of crypto-related services within the scope of financial regulation.
UK, US Eye Innovation Hub Under Crypto Legislation
As part of its broader digital asset strategy, the UK is working with international partners to strengthen cross-border innovation in financial services. Chancellor Reeves confirmed that the UK is in early talks with the United States to develop a joint sandbox for testing digital securities—a move that could allow firms on both sides of the Atlantic to trial new technologies under coordinated oversight.
The initiative, originally proposed by U.S. SEC Commissioner Hester Peirce, is expected to feature prominently in discussions at the next UK–U.S. Financial Regulatory Working Group. Reeves recently met with U.S. Treasury Secretary Scott Bessent in Washington to explore new avenues for fintech collaboration, with both sides looking at how shared regulatory frameworks could help companies grow across markets.
The cross-border dialogue comes ahead of the UK’s upcoming Financial Services Growth and Competitiveness Strategy, set for release on July 15, which will outline the government’s long-term plans to make fintech a pillar of economic development.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
