On Tuesday, the United Kingdom released draft legislation to regulate the cryptocurrency industry. The aim is to establish a comprehensive regulatory framework for digital assets. UK Finance Minister Rachel Reeves emphasized the government's commitment to making the UK a global leader in the digital assets space.
The proposed regulations will bring cryptocurrency exchanges, dealers, and agents into the regulatory fold. These regulations address concerns over bad actors and ensure legitimate innovation can thrive. Firms operating with UK customers must adhere to standards concerning transparency, consumer protection, and operational resilience, similar to traditional financial institutions, according to the UK Treasury.
Reeves highlighted the importance of international cooperation, referencing discussions with US Treasury Secretary Scott Bessent. She also announced plans to launch the Financial Services Growth and Competitiveness Strategy on July 15. The government intends to finalize the crypto asset legislation as soon as possible, engaging with industry stakeholders.