LONDON — On Tuesday, the British government unveiled a draft legislation aimed at the cryptocurrency sector, highlighting enhanced collaboration with the United States as it seeks to impose regulations on the volatile world of digital assets.
During a fintech event, U.K. Finance Minister Rachel Reeves introduced plans for a “comprehensive regulatory regime for crypto assets,” stating that these measures are designed to position the U.K. as a “world leader in digital assets.”
The proposed regulations will encompass crypto exchanges, dealers, and agents, aiming to “crack down on bad actors while fostering legitimate innovation,” as noted in a statement from the U.K. Treasury following Reeves’ address.
The Treasury further indicated that crypto companies serving U.K. customers will need to adhere to stringent standards regarding transparency, consumer protection, and operational resilience, aligning them with traditional financial institutions.
Reeves emphasized the importance of strengthening regulatory cooperation with the U.S. to encourage the “responsible” adoption of digital assets. “For the U.K. to be a world leader in digital assets, international cooperation is vital,” she remarked at the annual summit of fintech industry group Innovate Finance.
Last week, the finance minister held discussions with her U.S. counterpart, Scott Bessent, regarding a prospective trade agreement. She previously indicated that enhancing business relations with the European Union was “arguably even more important.”
“Regulation must support business, not hold it back,” Reeves noted on Thursday.
The FCA is tasked with overseeing the registration of firms that wish to provide crypto services, ensuring compliance with U.K. money laundering regulations.
