UK Government Unveils New Draft Cryptocurrency Regulations

The UK government has released comprehensive draft legislation aimed at regulating cryptocurrencies, including Bitcoin and Ether, to support innovation while strengthening consumer protections and market integrity. The new rules will bring crypto exchanges, dealers, and agents under similar regulatory expectations as traditional financial institutions, requiring UK approval for market activities and mandating stringent standards for transparency and operational resilience. These regulations, set to take effect in 2025, introduce clear definitions for qualified crypto assets and stablecoins, and address issues such as anti-money laundering and financial promotions. The initiative is part of a broader economic plan to close gaps that have allowed fraudulent or unstable operations, with an estimated 12% of UK adults holding crypto assets. International coordination is also underway, as discussions with U.S. officials aim to develop shared principles and explore a potential transatlantic sandbox for digital securities. Chancellor Rachel Reeves emphasized that the UK remains open to technological innovation but will not tolerate fraud or regulatory evasion.