UK Finance Minister Rachel Reeves announced on April 29, 2025, that the country will bring cryptocurrencies under compulsory regulation, closely aligning its approach with the United States. The draft legislation aims to bring crypto exchanges, dealers and agents into the regulatory perimeter, as 12% of British adults now own or have owned crypto assets, a significant increase from 4% in 2021.
The proposed regulations will extend existing financial regulation to companies involved in crypto, which experts note represents a divergence from the EU's more tailored approach and clearly aligns with the US "crypto as securities" perspective. Reeves discussed crypto regulation with US Treasury Secretary Scott Bessent during her April 2025 Washington visit, and the two countries agreed to continue discussions in June 2025 through the UK-US Financial Regulatory Working Group to support the responsible growth of digital assets. Under the new rules, crypto firms will have to meet standards on transparency, consumer protection, and operational resilience, similar to firms in traditional finance.
The finance ministry aims to finalise the new legislation by the end of 2025, building on initial proposals made in 2023, while Reeves will outline broader plans for boosting the growth and competitiveness of Britain's financial services industry on July 15, 2025, in her Mansion House speech. This regulatory framework is crucial for boosting investor confidence and supporting fintech growth while providing stronger consumer protection in the UK, where crypto asset ownership has tripled in just three years.
Sources:
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Finance & Investment
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Ryan Browne
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UK Finance Minister Rachel Reeves unveiled draft legislation on April 29 to bring crypto exchanges, dealers and agents into regulatory scope—mandating standards for transparency, consumer protection, and operational resilience, with legislation expected by end 2025. :contentReference[oaicite:1]{index=1}
