Great Britain presents new crypto rules

The British government presented its plans for comprehensive regulation of the crypto market. The aim is to protect consumers and to strengthen trust in digital assets – without hindering innovation.

The new set of rules is intended to put cryptocurrency exchanges, brokers and service providers under a formal supervisory regime for the first time. The plans are part of a larger financial strategy with which the United Kingdom also wants to position itself internationally as a crypto-friendly but regulated location. That goes out Reuters out.

Crypto regulation in response to growing acceptance

According to the government, around 12 % of the British population have cryptocurrencies such as Bitcoin or Ethereum – in 2021 it was still 4 %. Finance Minister Rachel Reeves therefore emphasized that clear rules of the game were necessary to minimize risks such as money laundering and fraud without slowing down legitimate market participants.

Among other things, it is planned that all crypto companies that offer services for British customers-regardless of where they are based-must comply with certain minimum standards. This includes transparency requirements, robust safety precautions and comprehensive measures to protect customer funds.

International cooperation and political support

Reeves emphasized the need for international coordinated regulatory approaches. She recently met with the US Finance Minister Scott Bessent to intensify the transatlantic coordination in terms of crypto legislation. Further discussions between the two states are scheduled for June. The aim of the British government is to put the final legislation into force by the end of 2025 at the latest.

While supporters see the planned regulation as an important step towards legitimizing the sector, critics warn that over -regulated markets could hinder innovations. However, Reeves assured that the balance between consumer protection and competitiveness will be preserved.

An additional aspect that underlines the urgency of the regulation is the increasing use of cryptocurrencies in everyday business and the increasing relevance of stable coins in digital payment transactions. Especially after the decision of Mastercard to allow stable coin payments in retailit becomes clear that digital assets are no longer a niche issue. The British financial supervision therefore sees itself as a duty to create clear framework conditions that protect both institutional investors and everyday users. At the same time, the United Kingdom's international competitiveness should be guaranteed and the country should be perceived as a location for regulated crypto innovations.