The UK comes up with its crypto game – with clear rules, daring reforms and global cooperation. At the UK Fintech Week Summit have the treasury and Chancellor of the Treasury, Rachel Reeves, Introduced concept rules to regulate Cryptoassets, aimed at protecting people against scams and shady companies. This is what the rules mandate?
Crypto companies are confronted with stricter standards
According to these new rules, crypto platforms that have to do with assets such as Bitcoin and Ethereum will now fall under stricter regulations. This includes scholarships, dealers and agents, who must follow the same high standards as traditional finances.
This means that crypto platforms that serve British customers must follow strict transparency, consumer protection and operational stability rules. The move is part of the “Plan for Change” of the UK, a strategy to grow financial services and at the same time reduce the risk.
With Crypto ownership in the UK that today triples to 12% from 4% in 2021, supervisors say it is time to step in. Too many people are exposed to risky platforms and scams. The new rules are intended to stop that and to ensure that users are better protected from the first day.
In the meantime, Reeves has made clear: the UK wants to be the best place to build in crypto, but the worst place for scammers.
UK and the US explore joint innovation
In addition to new local rules, the UK also works together with the US via the UK-US Financial Regulatory Working Group. The two countries investigate joint ways to promote safe crypto growth.
An exciting idea on the table is one “Transatlantic Sandbox,” A shared test room for digital effects, as proposed by SEC Commissioner Hester Peirce.
Large movements are coming in July
Reeves confirmed that the UK will release its first growth strategy for financial services on July 15, with Fintech called a top priority.
The government is also planning to complete and roll out the full crypto legislation at the end of 2025 after more discussions with players in the industry.