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Highlights
- UK announces major crypto news by publishing draft legislation for crypto regulation.
- Finance Minister Rachel Reeves announces plans for deeper regulatory cooperation with US.
- New framework aims to crack down on bad actors while supporting legitimate innovation.
The United Kingdom has announced major crypto news by taking the next step toward establishing a formal regulatory framework for cryptocurrencies. The UK has published draft legislation that outlines a “comprehensive regulatory regime for crypto assets.”
During a fintech event on Tuesday, UK Finance Minister Rachel Reeves announced the regulatory initiative alongside plans to deepen collaboration with the United States. This is with a vision to promote “responsible” adoption of digital assets globally.
UK announces collaboration with the US
UK Finance Minister Rachel Reeves emphasized international cooperation as a cornerstone of the country’s cryptocurrency strategy. She told CNBC that “For the UK to be a world leader in digital assets, international cooperation is vital.” During her address at Innovate Finance’s annual summit, Reeves shared plans to deepen regulatory cooperation specifically with the United States to boost “responsible” adoption of digital assets.
This prominent crypto news comes shortly after Reeves met with US Treasury Secretary Scott Bessent last week to discuss a potential trade deal. This shows that crypto regulation is becoming an increasingly important component of international economic relations. The timing of this collaboration is notable, as Reeves had previously stated that improving business ties with the European Union was “arguably even more important” than US relations.
UK plans to crack down on bad crypto factors
The Treasury Department’s statement following Reeves’ remarks emphasized that the new regulatory approach would bring crypto exchanges, dealers, and agents into the regulatory fold, “cracking down on bad actors while supporting legitimate innovation.” This balanced approach aims to protect consumers while still helping growth in the sector.
“Crypto firms with UK customers will also have to meet clear standards on transparency, consumer protection, and operational resilience — just like firms in traditional finance,” the Treasury statement added. This shows that cryptocurrency businesses will be held to similar standards as traditional financial institutions.
Reeves summed up the government’s philosophy with the statement that “Regulation must support business, not hold it back. The FCA, which serves as the UK’s financial services watchdog, has been criticized by cryptocurrency industry participants for being too restrictive when approving registrations from digital asset firms.
At present, the FCA oversees businesses that want to provide crypto services under UK money laundering laws. The new proposed law seems to aim to solve these issues while still having proper regulation. Coinbase had also recently made a major move in the UK with a new partnership.
This is important crypto news because it might create a more friendly regulatory environment for cryptocurrency businesses already in or wanting to come into the UK market. Check out some of the top crypto exchanges in the UK.
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