On April 29, UK Finance Minister Rachel Reeves announced plans for a "comprehensive regulatory regime" to position the country as a global leader in digital assets.
The proposed regulations will treat cryptocurrency exchanges, dealers and agents like traditional financial firms, strengthening transparency, consumer protection and operational resilience, the UK Treasury said in a statement following Reeves' announcement.
The Financial Services and Markets Act 2000 (Cryptoassets) Order 2025 will introduce six new regulated activities, covering areas such as trading, custody and staking of cryptocurrencies.
Unlike the EU's lighter-touch approach to crypto asset markets (MiCA), the UK plans to apply extensive securities regulation to cryptocurrencies.
This includes capital requirements, governance rules, market abuse rules and disclosure obligations, according to UK law firm Wiggin.