UK Government Reveals Draft Crypto Laws in Effort to Drive Growth, Protect Investors
The UK government has published draft legislation aimed at establishing clear regulations for cryptocurrencies to enhance investor confidence and consumer protection. The 27-page draft document amends the Financial Services and Market Act 2000, introducing definitions for crypto assets, including stablecoins, and bringing activities like custodying crypto assets and operating exchanges under regulatory oversight. The new rules will require crypto exchanges and firms with UK customers to adhere to standards on transparency, consumer protection, and operational resilience. This initiative follows discussions between UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent regarding collaboration on digital securities. A previous consultation in 2023 outlined potential regulations, and the government plans to finalize crypto asset legislation soon. As of August 2024, approximately 12% of UK citizens owned cryptocurrency, a significant increase from 4% in 2021.
