Crypto Rules Set to Boost Growth, Safeguard Consumers
Changes support innovation while cracking down on fraudsters
- Clear new rules to give investors confidence and protect consumers
- Chancellor also reveals discussions with US about supporting the use and responsible growth of digital assets, as Government works in national interest to drive growth through Plan for Change
Firms offering services for cryptoassets like Bitcoin and Ethereum will be subject to new, clear rules, boosting investor confidence and driving growth through the Plan for Change.
At a major summit in London to mark UK Fintech Week, the Chancellor revealed that the UK has published draft legislation for regulating cryptoassets – better protecting millions of people across Britain.
Around 12% of UK adults now own or have owned crypto, up from just 4% in 2021. But too often, consumers have been left exposed to risky firms and scams.
Under the new rules, crypto exchanges, dealers and agents will be brought into the regulatory perimeter – cracking down on bad actors while supporting legitimate innovation. 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 Chancellor also revealed that the UK and US will use the upcoming UK – U.S. Financial Regulatory Working Group to continue engagement to support the use and responsible growth of digital assets.
This follows discussions in Washington between the Chancellor and the US Treasury Secretary, Scott Bessent, where they also discussed opportunities to support businesses to innovate on both sides of the Atlantic. This includes looking at ideas for how we could allow for greater collaboration on digital securities between the UK and US, including the proposals put forward by SEC Commissioner Hester Peirce for a transatlantic sandbox for digital securities.
Rachel Reeves, Chancellor of the Exchequer, said:
Through our Plan for Change, we are making Britain the best place in the world to innovate – and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.
Today’s announcement sends a clear signal: Britain is open for business – but closed to fraud, abuse, and instability.
The Chancellor also announced that the government will publish the first-ever Financial Services Growth and Competitiveness Strategy on 15 July, alongside her Mansion House speech. This will support the financial services sector’s long term growth, with Fintech identified as a priority sector, and help it finance investment and growth across the UK.
The government will bring forward final cryptoasset legislation at the earliest opportunity, following engagement on the draft provisions with industry.
https://www.gov.uk/government/news/new-cryptoasset-rules-to-drive-growth-and-protect-consumers