HM Treasury has published draft legislation to regulate cryptoasset activities in the UK, extending the regulatory perimeter to firms offering services for cryptoassets such as Bitcoin and Ethereum. The proposals would subject crypto exchanges, dealers and agents to clearer requirements intended to increase investor confidence while strengthening consumer protection. Under the draft framework, crypto firms with UK customers would need to meet standards on transparency, consumer protection and operational resilience comparable to those applied in traditional finance, with the stated aim of reducing exposure to scams and risky firms. The update also flagged continued UK–US engagement on digital assets via the UK–U.S. Financial Regulatory Working Group, including discussions on collaboration around digital securities and the idea of a transatlantic sandbox. The government plans to develop final cryptoasset legislation after further engagement with industry and said it will bring forward the final legislation at the earliest opportunity. HM Treasury also announced that it will publish a Financial Services Growth and Competitiveness Strategy on 15 July alongside the Chancellor’s Mansion House speech.
HM Treasury 2025-04-29
United Kingdom's HM Treasury publishes draft legislation to bring cryptoasset service providers into the regulatory perimeter
HM Treasury released draft legislation to regulate cryptoasset activities in the UK, extending oversight to firms offering services for assets like Bitcoin and Ethereum. The proposals aim to enhance investor confidence and consumer protection by imposing transparency, consumer protection, and operational resilience standards on crypto firms. Additionally, the update highlights ongoing UK–US collaboration on digital assets through the UK–U.S. Financial Regulatory Working Group.