Firms selling cryptocurrencies will soon have to face the same standards as traditional financial companies, under planned new rules from the Treasury.
Crypto exchanges, dealers and agents offering services for cryptoassets like Bitcoin and Ethereum will be brought into the scope of financial regulators as part of the incoming changes, so they are better policed.
What will new cryptoasset rules mean?
Crypto firms with UK customers will have to meet clear standards on transparency, consumer protection, and operational resilience – just like firms in traditional finance.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The aim is to crack down on scammers and other “bad actors”, better protecting millions of people across Britain, while supporting legitimate innovation, the Treasury says.
Around 12% of UK adults now own or have owned crypto, up from just 4% in 2021. But too often, the Treasury says, consumers have been left exposed to risky firms and scams.
At a major summit in London to mark UK Fintech Week, the chancellor Rachel Reeves revealed the UK has published draft legislation for regulating cryptoassets.
Reeves said on Tuesday: “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.”
Final cryptoasset legislation will be put in place after talks on the draft provisions with the crypto sector.
The chancellor also said discussions were underway with the US about supporting the use and responsible growth of digital assets, as part of the UK Labour Government’s Plan for Change.
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 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 – a way to trial new technologies and practices.
The Chancellor also announced the government will publish the first-ever Financial Services Growth and Competitiveness Strategy on 15 July, alongside her Mansion House speech.
This aim is to “support the financial services sector’s long term growth”, with fintech identified as a “priority sector”, and to help it finance investment and growth across the UK, the Treasury says.
-
How to find the best luxury hotel dealsKnowing how to find the best luxury hotel deals can help holidaymakers enjoy high-end experiences without the sky-high costs. We reveal how to bag the best value for less.
-
Frozen thresholds could push ‘tax freedom day’ to latest date this centuryTax freedom day is the point in the year you stop earning for the taxman and start earning for yourself. A rising tax burden could push it to 12 June this year – the latest date since 1982.
