In a significant shift for the UK’s digital asset sector, Chancellor of the Exchequer Rachel Reeves has announced that cryptocurrency companies will soon be subject to the same regulatory standards as traditional financial institutions.
Speaking at the Innovate Finance Global Summit in London, Reeves unveiled plans to reinforce consumer protections while continuing to back innovation in the fintech and crypto industries.
The proposed regulatory framework—expected to be enshrined in law by the end of the year—aims to support credible crypto businesses while enhancing transparency and accountability.
The Treasury said the move is part of a wider economic strategy to foster sustainable growth without compromising the UK’s adherence to high international standards.
“The UK will always uphold global best practices, but I am determined that our regulations also drive economic progress,” Reeves stated.
The announcement comes amid a rapid increase in crypto adoption among UK citizens. According to the Financial Conduct Authority (FCA), 12% of UK adults currently hold or have previously held cryptoassets—up from 4% in 2021. While this surge reflects growing interest, it has also raised concerns about investor risk and market volatility.
Reeves’ remarks follow a recent diplomatic visit to Washington, where she met with US Treasury Secretary Scott Bessent. Discussions included not only trade cooperation but also plans for transatlantic alignment on crypto regulation.
The UK Treasury confirmed that further negotiations are scheduled for June under the UK-US Financial Regulatory Working Group.
“To cement Britain’s position as a global leader in digital assets, international coordination is essential,” Reeves said, noting the importance of a harmonised approach to regulatory oversight.
Legal experts have largely welcomed the chancellor’s proposal. Nick Price, a crypto and financial services lawyer at Osborne Clarke, praised the initiative for aligning the UK’s stance with that of the United States. He described the legislation as “clear-cut and stable,” with a strong emphasis on consumer protection.
However, Price also cautioned that it remains to be seen whether the framework will translate into long-term growth for the UK’s crypto sector.
