UK Targets Global Crypto Leadership With Bold Regulatory Framework

Finance Minister Rachel Reeves has introduced a sweeping proposal aimed at placing crypto firms under the same regulatory scrutiny as traditional financial institutions.

The proposed framework—part of the upcoming Cryptoassets Order 2025—lays out six distinct areas of regulation, covering crypto trading, custody, staking, and related services. Unlike the EU’s lighter MiCA framework, the UK’s approach leans into securities-style rules, with capital requirements, governance standards, and strict compliance measures.

Key voices in the industry see this as a turning point. Circle’s Dante Disparte applauded the move, calling it a strong signal that the UK is ready to support long-term innovation. Bitget’s COO Vugar Usi Zade echoed the sentiment, noting that clearer definitions will finally give companies the confidence to enter the market and invest in local infrastructure.

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Under the draft rules, crypto exchanges must obtain full approval from the Financial Conduct Authority (FCA) before offering trading, lending, or staking services to UK users. Foreign platforms targeting UK retail clients will also need FCA authorization, tightening oversight on cross-border operations.

Stablecoins are set to be classified as securities rather than e-money, subjecting UK-issued tokens to disclosure and redemption obligations. Foreign stablecoins may still operate but only through regulated venues.

While the new framework introduces more oversight, it also raises concerns for smaller and decentralized projects. Some in the industry caution that definitions—particularly around staking—may be too broad, risking unintended regulatory pressure on non-custodial DeFi platforms. Proposed credit card restrictions and client asset segregation rules could also strain smaller ventures unless refined.

Finalized guidelines are expected in 2026. As the UK pushes forward with its vision, its path may diverge from the EU’s—but the ambition is clear: to lead in building a rules-based, innovation-friendly digital economy.

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