UK Proposes New Crypto Rules, Seeks Enhanced Collaboration With US

• U.K. Finance Minister Rachel Reeves on Tuesday announced plans for a "comprehensive regulatory regime for crypto assets."
• The U.K.'s Treasury released proposed regulations designed to incorporate cryptocurrency exchanges, traders, and representatives into the supervisory framework.
• Reeves stated that the UK intended to enhance regulatory collaboration with the US to promote the "responsible" uptake of digital assets.

LONDON — On Tuesday, Britain released proposed laws aimed at the cryptocurrency sector, emphasizing enhanced cooperation with the U.S. as part of its efforts to bring order to the volatile realm of digital currencies.

At a fintech conference on Tuesday, UK Financial Secretary Rachel Reeves unveiled plans for an extensive regulatory framework for cryptoassets, stating that these measures intend to position the nation as a global frontrunner in digital assets.

The regulations aim to incorporate cryptocurrency exchanges, traders, and intermediaries within the supervisory framework, "targeting illicit participants while fostering genuine progress," according to a statement from the U.K.’s Treasury department issued after Reeves’ comments.

"Cryptocurrency companies serving UK clients must adhere to stringent requirements for transparency, consumer safeguarding, and operational robustness—similar to those expected from conventional financial institutions," the Treasury’s announcement noted.

Reeves stated that the U.K. intended to enhance regulatory collaboration with the U.S. to promote the responsible integration of digital assets. She emphasized to those present at Innovate Finance’s yearly gathering that global partnership was crucial for the U.K. to become a frontrunner in the domain of digital assets.

Last week, the UK's treasury chief held talks with his American peer, Scott Bessent, regarding potential trade agreements. Earlier, she had mentioned that strengthening commercial relationships with the EU was possibly "even more crucial."

"Regulations should foster businesses instead of hindering them," Reeves stated on Thursday.

According to cryptocurrency industry experts, the Financial Conduct Authority, the regulatory body for financial services in the UK, has been overly stringent regarding approvals for registration of digital asset companies.

The Financial Conduct Authority (FCA) serves as the regulatory body tasked with registering companies that intend to offer cryptocurrency services under anti-money laundering laws in the UK.

Share :