UK Treasury Releases Draft Crypto Regulations for Exchanges and Stablecoins
The post UK Treasury Releases Draft Crypto Regulations for Exchanges and Stablecoins appeared on BitcoinEthereumNews.com.
The UK government has taken a major step toward regulating the cryptocurrency industry with the release of draft legislation aimed at bringing the sector under formal oversight. UK Finance Minister Rachel Reeves announced the plans on Tuesday during a fintech event, describing the move as creating a “comprehensive regulatory regime for crypto assets.” The proposed rules will extend existing financial regulations to companies involved in cryptocurrency, including exchanges, dealers, and agents. This approach aligns Britain more closely with the United States rather than the European Union, which has developed tailored rules specific to the crypto industry. Under the new framework, crypto firms serving UK customers will need to meet standards on transparency, consumer protection, and operational resilience similar to those required of traditional financial institutions. The government aims to finalize the legislation by the end of the year. Growing Crypto Adoption The timing of these regulations comes as cryptocurrency ownership continues to grow among British consumers. According to government figures, approximately 12% of British adults now own or have owned cryptocurrencies such as Bitcoin or Ethereum, a substantial increase from just 4% in 2021. The draft rules outline several key activities that will require authorization, including issuing stablecoins, providing custody services, operating trading platforms, dealing in crypto as a principal or agent, arranging crypto transactions, and offering staking services. For stablecoins specifically, the regulations create a new “qualifying stablecoins” category that distinguishes them from electronic money and tokenized deposits. However, the rules specify that stablecoin issuers will only be subject to regulation if they are based in the UK. International Coordination Reeves emphasized the importance of international cooperation in effectively regulating digital assets. During her speech, she revealed that she had discussed crypto regulation with US Treasury Secretary Scott Bessent during a recent visit to Washington, with further talks planned…
