In a major step toward aligning crypto with traditional finance, Chancellor Rachel Reeves has announced new legislation to bring cryptoasset activities under UK regulation.
The announcement, made during UK Fintech Week, sets out a framework aimed at positioning the UK as a global leader in digital assets.
“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.”
Recent research by the Financial Conduct Authority found that around 12% of UK adults owned crypto in 2024, up from 4% in 2021, prompting the further need for clear regulation.
Under the proposed rules, firms dealing in cryptoassets, including exchanges, brokers, and custodians, will officially be brought into the UK’s financial regulatory perimeter.
To ensure safe and sustainable innovation, any crypto firm serving UK customers will be required to meet the new standards in areas such as consumer protection and operational resilience.
The new rules are mirroring expectations already placed on traditional financial institutions.
These changes are intended to create a level playing field between crypto-native firms and long-established institutional firms, increasing consumer trust, and pushing global competitiveness.
The Chancellor also noted that the UK and US will use the upcoming Financial Regulatory Working Group to advance joint efforts on the legitimate growth of digital assets.
The announcement sends a clear signal, according to HM Treasury: Britain is open for business, but closed to fraud, abuse, and instability.
