Crypto ownership in the UK has tripled since 2021, prompting the government to act on regulation and consumer protection
The UK government has published a draft law to formally regulate digital asset firms and better protect consumers, marking a major step as crypto adoption accelerates across the country.
The new measures will bring crypto exchanges, brokers, and custodians under formal financial regulation for the first time in the UK.
The announcement was made yesterday during UK Fintech Week, held in London, where the Chancellor of the Exchequer, Rachel Reeves, revealed the plans.
“Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers,” she said.
“Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.”
The move follows a sharp increase in crypto engagement, with ownership among UK adults rising from 4% in 2021 to 12% in 2024, according to the Financial Conduct Authority (FCA).
Under the proposed rules, crypto companies serving UK customers will be required to meet clear standards on transparency, operational resilience, and consumer protection, similar to firms in traditional finance.
UK’s ‘Plan for Change’ links crypto oversight with broader fintech growth goals
The draft provisions are part of the government’s broader “Plan for Change,” designed to support innovation while clamping down on abuse.
The framework aligns with Britain’s ambition to become a global hub for digital asset technologies.
Alongside the new crypto rules, the government will publish its first-ever Financial Services Growth and Competitiveness Strategy on July 15, timed with the Chancellor’s Mansion House speech.The initiative will prioritize fintech and outline new measures to finance growth across the UK economy.
Cross-border alignment and industry engagement signal UK’s global ambition
In a sign of transatlantic cooperation, the UK and U.S. will continue discussions on responsible digital asset growth through the upcoming UK-U.S. Financial Regulatory Working Group.
Recent talks in Washington between the Chancellor and U.S. Treasury Secretary Scott Bessent also explored the idea of a shared “transatlantic sandbox” for digital securities, a concept promoted by U.S. SEC Commissioner Hester Peirce.
The UK government confirmed it will bring forward final crypto legislation “at the earliest opportunity,” following further engagement with industry stakeholders.
