The United Kingdom Government on Tuesday released draft legislation to regulate the activities of cryptocurrency firms, in line with growing global efforts to control the digital asset space.
The new law, which targets cryptocurrencies such as Bitcoin and Ethereum, seeks to bring exchanges, dealers and agents into the financial regulatory framework.
The UK Finance Ministry said in a statement that the objective is to eliminate bad actors and support legitimate innovation in the sector.
“Crypto firms with UK customers will also have to meet clear standards on transparency, consumer protection, and operational resilience — just like firms in traditional finance,” the ministry stated.
The development comes months after the European Union’s Markets in Crypto-Assets Regulation (MiCA) came into force in December 2024.
Speaking at a fintech summit in London, the UK Chancellor of the Exchequer, Rachel Reeves, said the government is in discussion with the United States to ensure regulatory alignment and global cooperation on cryptocurrency oversight.
She said such collaboration is necessary to foster safe growth of the digital economy without stifling innovation.
“I discussed continued US-UK engagement with US Treasury Secretary, Scott Bessent, and further dialogue is scheduled to hold at the UK-US Financial Regulatory Working Group in June,” she said.
Reeves said the meeting would focus on how to support the use and responsible growth of digital assets.
Statistics from the finance ministry indicate that around 12 per cent of UK adults currently own or have previously owned digital currencies, a significant rise from four per cent in 2021.
In November 2024, the UK Financial Conduct Authority (FCA) announced plans to roll out a full regulatory framework for cryptocurrencies by 2026.
The government also disclosed that a broader financial services strategy would be unveiled on July 15.
