UK announces draft rules for crypto industry and US collaboration

LONDON – The UK released a draft law for the cryptocurrency industry on Tuesday, touting greater cooperation with the US in pursuing to regulate the wild world of digital assets.

Speaking at Tuesday’s Fintech event, UK Finance Minister Rachel Reeves announced plans for a “comprehensive regulatory regime of crypto assets,” adding that the proposal aims to make the country a “world leader in digital assets.”

The rules will lead crypto exchanges, dealers and agents to regulators and “crash bad actors while supporting legitimate innovation,” the UK Treasury Department said in a statement released following Reeves’ comments.

“Crypto companies with UK clients must meet clear standards of transparency, consumer protection and operational resilience, just like traditional financial companies,” the Treasury statement added.

Reeves said the UK plans to deepen its regulatory cooperation with the US to encourage the “responsible” adoption of digital assets. “International cooperation is essential for the UK to become a global leader in digital assets,” she told participants at the annual summit of Innovate Finance at Fintech Industry Group.

The UK Finance Minister met with US counterpart Scott Bescent last week to discuss the trade agreement. She previously said improving business relations with the European Union is “undetectedly even more important.”

“Regulations need to support businesses rather than curb them,” Reeves said Thursday.

Crypto Industry Insiders says the UK’s financial services watchdog Financial Conduct Authority is too restrictive when it comes to approving registrations from digital asset companies.

The FCA is a regulatory authority responsible for registering companies that wish to provide cryptographic services within the UK’s money laundering regulations.