In a move poised to reshape the UK's digital asset landscape, Chancellor of the Exchequer Rachel Reeves announced on Tuesday that crypto firms will soon face the same regulatory standards as traditional financial institutions.
Reeves, speaking at the Innovate Finance Global Summit in London, declared her intention to "back the builders" of the fintech and crypto space while ensuring strong consumer protections.
The new regulatory framework, expected to become law later this year, aims to support legitimate crypto enterprises while introducing heightened requirements for transparency and consumer safety. According to the Treasury, the legislation is part of a broader strategy to encourage economic growth without compromising international standards.
Don't Miss:
- Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies.
- Grow your IRA or 401(k) with Crypto – unlock the power of alternative investments including a Crypto IRA within your retirement account.
"While the UK will always be committed to high international standards, I am determined that our regulatory framework supports economic growth," Reeves said.
The announcement comes amid growing interest in cryptocurrencies across the UK. According to the Financial Conduct Authority, approximately 12% of UK adults now own or have owned cryptoassets—up from just 4% in 2021. However, the surge in adoption has sparked concerns.
Reeves' remarks follow her recent visit to Washington, where she met with US Treasury Secretary Scott Bessent to discuss not only a potential trade deal but also transatlantic cooperation on crypto regulation. The UK Treasury said that both sides agreed on the importance of coordinating regulatory efforts to support responsible sector growth.
"For the UK to be a world leader in digital assets, international cooperation is vital," Reeves said on Tuesday, adding that further talks are planned for June as part of a US/UK regulatory working group.
Trending: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase.
Legal experts welcomed the direction of the chancellor's announcement. Nick Price, a crypto and financial services lawyer at Osborne Clarke, was quoted as saying in media reports that the idea "explicitly aligns the UK with the US approach" and marks "a divergence" from the European Union's more customized crypto regulations.
Price described the UK's proposal as "a simple and straight-forward piece of legislation" that offers "a great deal of certainty and stability" while prioritizing consumer protection. However, he added that "it remains to be seen" whether the framework will also foster meaningful sector growth.
Reeves confirmed on Tuesday that the annual Mansion House speech is scheduled for July 15. The Mansion House speech, a traditional address by the chancellor to detail priorities for the country’s financial sector, will include new growth and competitive strategies that highlight fintech as a “priority sector," she said.
Read Next:
- A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase.
- Maximize saving for your retirement and cut down taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation.
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
