Chancellor Rachel Reeves has revealed plans to regulate the cryptoasset industry in hopes of cracking down on bad actors while giving clarity to crypto firms.
Announced at the Innovate Finance Global Summit on Tuesday, Reeves announced draft legislation to regulate the cryptoasset sector amid calls for transparency from the industry.
“Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers,” said Reeves.
“Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.”
According to research from UK financial regulators, as many as 12% of UK adults owned cryptoassets in 2024, up from just 4% in 2021.
The government said it will bring forward final cryptoasset legislation “at the earliest opportunity” following engagement with industry.
Read more: Crypto is ‘here to stay’, City minister says
So far, regulation around crypto in the UK has been fairly limited, with the Financial Conduct Authority (FCA) having some ability to limit promotions of crypto ventures and enforcing existing anti-money laundering requirements.
The industry has, however, been keen to see a more robust framework that would provide clear guidance on operations in Britain.
A spokesperson for the industry body CryptoUK told UKTN: “Rachel Reeves’ commitment to provide new and clearer rules for the digital assets industry is very much welcomed and a big victory for our members, who have been working tirelessly over the last seven years to place the UK at the forefront of the crypto industry.
“We look forward to engaging with all key stakeholders as we have done on every past piece of new legislation, to ensure that the technical details make sense. Specifically, we want clarity around the activity of liquid staking and how to define defi, an incredibly important sub-sector the digital assets industry.”
Reeves also said Whitehall has had close discussions with the US Treasury regarding both the regulation of crypto and collaborative opportunities.
The nations will use the upcoming UK–US Financial Regulatory Working Group to continue engagement on these issues.
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