World Crypto Global
- Written by: Jared Kirui
- Tue, 29 Apr 2025
- Israel
As crypto adoption surges in the UK, the governmenthas introduced draft legislation seeking to tighten oversight of crypto firmswhile keeping Britain attractive to investors and innovators.The announcement, made by Chancellor Rachel Reeves ata London fintech summit, could mark a turning point in how the UK approaches digitalassets like Bitcoin and Ethereum. Through our Plan for Change, we are making Britainthe best place in the world to innovate and the safest place for consumers.Robust rules around crypto will boost investor confidence, support the growthof fintech, and protect people across the UK, Rachel Reeves, Chancellor of theExchequer, commented. A New Regulatory Era for Crypto in the UKWith ownership of crypto assets among UK adults risingfrom 4% in 2021 to 12% in 2024, the government sees an urgent need to protectconsumers from fraud and instability.Under the proposed rules, crypto exchanges, dealers,and agents serving UK customers would need to meet the standards ontransparency, consumer protection, and operational resilience, aligning themmore closely with traditional financial institutions.The Financial Conduct Authoritys research has alsohighlighted the risks. As more people get involved in crypto, many remainunaware of the dangers, and some have already fallen victim to scams. Theproposed legislation places consumer safety at the heart of crypto regulation.In parallel, Reeves disclosed that the UK and the U.S. areengaging more closely on digital assets. The two countries will continue talksthrough the UK-U.S. Financial Regulatory Working Group. They are also exploring deeper collaboration ondigital securities, including a proposed transatlantic sandbox championed byU.S. SEC Commissioner Hester Peirce.Fintech Growth StrategyThat sandbox could allow innovators on both sides ofthe Atlantic to test products under aligned, cross-border regulatory conditions, potentially transforming fintech's global development.Beyond crypto, the government plans to launch theFinancial Services Growth and Competitiveness Strategy on July 15. It will include measures to support long-term growthin financial services, with fintech highlighted as a priority. The finalversion of the crypto legislation will be released after the industry respondsto the draft.The move underscores the UKs ambition to become aglobal hub for digital asset technologies while enforcing guardrails to preventabuse.Early this year, the UK Treasury amended its regulations toseparate blockchain validation activities, such as cryptocurrency staking, fromcollective investment schemes, offering a clearer regulatory guidance for the digitalasset industry.This article was written by Jared Kirui at www.financemagnates.com.
