UK Government To Regulate Cryptocurrencies
THECONSCIENCE NG — The UK government on Tuesday released draft legislation to regulate cryptocurrencies such as Bitcoin and Ethereum, aligning itself with global efforts following the European Union’s rollout of its Markets in Crypto-Assets Regulation (MiCA), which took effect in December.
According to a statement from the finance ministry, the proposed rules will bring crypto exchanges, brokers, and agents within the regulatory perimeter. The aim is to curb illicit activity while encouraging responsible innovation.
“Crypto firms with UK customers will also be required to meet robust standards on transparency, consumer protection, and operational resilience — similar to those expected of traditional financial institutions,” the ministry said.
Chancellor of the Exchequer Rachel Reeves emphasized that international cooperation is essential. Speaking at a fintech summit in London, she noted ongoing discussions with U.S. officials, stating, “Regulation must support business, not hold it back.”
Reeves added that she had spoken with U.S. Treasury Secretary Scott Bessent the previous week and that further dialogue would continue at the UK-US Financial Regulatory Working Group meeting in June, focusing on promoting the responsible development of digital assets.
The government highlighted a growing interest in cryptocurrencies, with around 12% of UK adults currently holding or having previously held digital assets — up from 4% in 2021.
The Financial Conduct Authority (FCA) is also expected to introduce a detailed regulatory framework for crypto by 2026. Meanwhile, the government announced that a broader financial services strategy will be unveiled on July 15.
