UK Crypto Regulation Now Mirrors US Approach
📈 The United Kingdom is rewriting its crypto playbook—bringing digital assets under the same umbrella as traditional financial instruments.
📊 The UK crypto regulation shift is part of a draft law that will treat cryptoassets like traditional financial instruments, bringing them under the Financial Services and Markets Act 2000. Unlike the European Union’s bespoke framework, this move aligns more closely with the US system, which crypto businesses say is more innovation-friendly.
📢 UK Chancellor Rachel Reeves confirmed that the UK crypto regulation will be finalised by the end of 2025. She emphasized that robust rules will “boost investor confidence, support fintech growth, and protect consumers.” The government’s aim is clear: regulate without suffocating the industry.
🔍 Under the draft legislation, crypto exchanges, dealers, and agents will be officially brought into the regulatory fold. However, some exemptions exist under the UK crypto regulation—most notably for stablecoins. This is designed to ensure innovation can continue while consumer protections are implemented.
📈 Crypto ownership is on the rise in Britain. According to the Financial Conduct Authority, nearly 12% of UK adults held crypto in 2024—triple the rate from 2021. The growing popularity of digital assets has made UK crypto regulation a pressing issue for lawmakers.
🛠 The Treasury’s draft law follows a 2023 consultation and now seeks technical feedback from stakeholders until May 23. Crypto executives have long argued that the current UK crypto regulation setup is too slow and restrictive when registering new firms.
🤝 What’s different this time is the international collaboration. The UK crypto regulation blueprint is nearly identical to the US’s framework, shaped by Donald Trump’s 2025 executive order titled “Strengthening American Leadership in Digital Financial Technology.” That directive unified federal agency oversight on crypto, treating it as a financial asset.
🇺🇸 In her speech, Reeves noted conversations with US Treasury Secretary Scott Bessent about deepening cooperation, including a proposed UK-US digital securities sandbox. The sandbox would allow crypto companies to test services in both jurisdictions with reduced red tape—a key feature of this new UK crypto regulation.
📆 Reeves added that these cross-border efforts will continue during the June UK-US Financial Regulatory Working Group meeting. “For the UK to be a world-leader in digital assets, international cooperation is vital,” she said. The UK crypto regulation roadmap is seen as a strategic play to cement London’s role in the global fintech race.
📉 Meanwhile, the EU is steering a different course. The Markets in Crypto-Assets (MiCA) framework became law in December 2024. Unlike the UK crypto regulation, MiCA is a tailored regulatory regime crafted specifically for digital assets.
🛑 Critics argue that Europe’s approach is overly cautious. President Trump recently called the EU “one of the most hostile and abusive taxing and tariffing authorities in the World.” The UK crypto regulation stance reflects a divergence from EU risk-averse strategies.
📍 The contrast between jurisdictions is sharpening. In March, Eurozone finance ministers raised concerns about the global risks of a looser regulatory environment. “These discussions are fundamentally linked to our own autonomy,” said Eurogroup President Paschal Donohoe, reacting to the rise of US-style UK crypto regulation.
🌐 Ultimately, the UK crypto regulation strategy places Britain in the middle of a global regulatory divide. It hopes to balance market oversight with innovation—a move that could influence regulatory trends worldwide.
