On April 29, 2025, the UK Treasury announced draft regulations for cryptocurrencies like Bitcoin and Ether, aiming to align crypto exchanges and dealers with existing financial rules. This proposal addresses the increase in crypto ownership and the associated risks of scams, as highlighted in a notice from HM Treasury.
Chancellor of the Exchequer Rachel Reeves aims to foster innovation while cracking down on fraudulent activities. The government has engaged in discussions with US officials, exploring a potential US-UK cross-border sandbox for digital assets. The UK's Financial Conduct Authority (FCA) reported that around 12% of UK adults owned crypto in 2024, up from 4% in 2021.
The new regulations will require crypto firms with UK customers to meet transparency, consumer protection, and operational resilience standards, similar to traditional financial institutions. The government plans to finalize cryptoasset legislation after consulting with the industry and will publish its Financial Services Growth and Competitiveness Strategy on July 15.