Chancellor Rachel Reeves has announced new plans to regulate cryptoassets like Bitcoin, positioning the UK as a global leader in digital finance.
The upcoming legislation aims to bring crypto firms under similar regulatory standards as traditional financial institutions.
Speaking at a fintech conference at London’s Guildhall, Reeves expressed her commitment to supporting legitimate innovation in the sector while ensuring strong consumer protection and financial transparency.
The Treasury confirmed that the new rules, expected to be passed into law later this year, are designed to protect investors and increase confidence in digital assets.
The number of UK adults owning or having previously owned crypto has grown significantly in recent years, rising to around 12 percent from just 4 percent in 2021.
Despite this surge, concerns remain about young people engaging with high-risk assets without sufficient understanding. The Financial Conduct Authority (FCA) has previously raised alarm over the growing appeal of cryptocurrencies as a first investment choice.
Reeves’ announcement comes shortly after her visit to Washington, where she met with US counterpart Scott Bessent to discuss digital finance.
The Treasury revealed that the two agreed to work together on regulatory standards for crypto across the Atlantic. Reeves emphasised the importance of international cooperation to secure the UK’s position in the digital finance sector.
Further discussions are expected in June at the upcoming US-UK regulatory working group. This meeting aims to develop coordinated policies that encourage the safe and responsible expansion of crypto technologies.
Legal experts have welcomed the move. Nick Price, a specialist in crypto and financial law at Osborne Clarke, noted that the UK’s approach closely mirrors the US model and offers clarity and security for businesses and consumers alike. However, he cautioned that it remains uncertain whether the regulations will directly contribute to industry growth.
The Chancellor also confirmed she will deliver the Mansion House speech on 15 July, during which she plans to unveil a new strategy to boost growth and competitiveness in financial services. Fintech will be highlighted as a priority sector in this strategy.
