The UK government on Tuesday published draft legislation designed to regulate cryptocurrencies such as Bitcoin and Ethereum, following the European Union’s introduction of its own crypto framework.
“Crypto exchanges, brokers and agents will be brought within the regulatory perimeter — targeting bad actors while encouraging responsible innovation,” the Treasury said in a statement.
It added that crypto firms serving UK customers would be required to meet strict standards on transparency, consumer protection, and operational resilience, similar to those expected of traditional financial institutions.
The new framework follows the implementation of the EU’s Markets in Crypto-Assets Regulation (MiCA), which came into effect in December.
Chancellor of the Exchequer Rachel Reeves highlighted the importance of transatlantic coordination, stating that regulation should “support business, not hold it back”.
Speaking at a fintech summit in London, Reeves emphasised that international collaboration was essential for managing the evolving sector.
She said she had recently held talks with US Treasury Secretary Scott Bessent to ensure “continued US and UK engagement” on digital asset regulation.
Further discussions are expected at the upcoming UK-US financial regulatory working group meeting in June, aimed at promoting responsible growth in the use of digital assets.
According to recent data, approximately 12 per cent of UK adults currently own or have previously owned cryptocurrencies — a significant rise from just four per cent in 2021.
In a related move, the UK’s Financial Conduct Authority (FCA) announced last November that a comprehensive set of crypto-specific regulations would be finalised by 2026.
In addition, the government revealed on Tuesday that a wider financial services strategy will be launched on 15 July.