UK government targets crypto exchanges and stablecoins with new draft crypto regulations
Author: Kamomil Shumba | Edited by Oliver Knight, Sheldon Reback Updated April 29, 2025, 4:29 PM Published April 29, 2025, 2:00 PM
The UK government has released consultation papers on a draft crypto industry bill that would create a regulatory framework for activities such as crypto exchanges and stablecoins, as well as regulate market fraud, eligibility rules and disclosure requirements.
The proposed regulations build on the Financial Services and Markets Act, which came into force in 2023 and gave the Treasury powers to develop new rules on cryptocurrencies. The UK lags behind the European Union, where the Markets in Cryptocurrency Act (MiCA) was introduced last year.
The government has also sought cooperation with the United States, where the Donald Trump administration has loosened controls on cryptocurrencies and the Securities and Exchange Commission has dropped lawsuits against more than a dozen crypto companies.
Chancellor of the Exchequer Rachel Reeves, speaking at the Innovate Finance global summit, said the new rules were aimed at facilitating the country’s economic growth. The bill is scheduled for this year and is designed to make “the UK an attractive investment and innovation destination for digital asset companies,” Reeves said.
She also added that the UK would work with the US to “support the use and responsible growth of digital assets.”
The Treasury Department is open to technical comments on the proposed rules until May 25 and intends to publish rules on market fraud, admissions and disclosures in due course, according to a statement on the government website.
Read more: UK regulator to start licensing crypto firms in 2026
UPDATE (April 29, 16:30 UTC): Added content to first paragraph, EU to second, industry comment schedule to last paragraph
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