UK sets new crypto rules as 12% hold digital assets

The United Kingdom has introduced draft regulations aimed at tightening oversight of cryptocurrency firms amid rising concerns over scams and growing public participation in digital asset markets.

On April 29, HM Treasury released a notice detailing proposals intended to bring crypto exchanges, dealers, and agents under a more defined regulatory framework.

“Support innovation while cracking down on fraudsters,” stated the UK Treasury and Chancellor of the Exchequer, Rachel Reeves, as the announcement came.

“Today’s announcement sends a clear signal,” the government said.

“Britain is open for business — but closed to fraud, abuse, and instability.”

According to the notice, the UK is responding to increased crypto ownership, with data showing that 12% of UK adults now own digital assets, a rise from 4% in 2021.

The government said final legislation will follow after discussions with industry stakeholders on the proposed draft.

The new rules are part of the broader effort to align crypto activities — including trading and issuing stablecoins — with existing financial regulations.

These developments echo earlier goals set by the previous administration to make the UK a “global hub for digital asset technologies.”

In response to the proposed framework, Ian Silvera of CryptoUK described the move as “very much welcomed” but noted the need for clarity in areas such as liquid staking and decentralized finance.

“Though there has been good regulatory progress from the [Financial Conduct Authority],” said Silvera, “progress has been slow since then, but as the Chancellor has recognised herself, the mainstreaming of the industry has continued.”

The Financial Conduct Authority is expected to release final rules by 2026, building the foundation of a domestic regulatory regime.

The UK’s path may mirror the European Union’s Markets in Crypto-Assets framework, parts of which began implementation in late 2023.