UK Chancellor Vows to ‘Back the Builders’ with New Crypto Regulations Aimed at Transparency and Consumer Protection
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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.
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“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.
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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.