UK Unveils Draft Crypto Rules to Boost Innovation and Fight Fraud

The April 29 announcement outlined a regulatory approach designed to bring crypto exchanges, dealers, and agents under the same scrutiny as traditional financial institutions. The government noted that the move is a response to rising consumer exposure to scams and risky firms operating in the digital asset space.

Global Cooperation and Regulatory Momentum

The proposed framework reflects international coordination, citing talks with U.S. officials, including a potential cross-border crypto sandbox developed in partnership with SEC Commissioner Hester Peirce. The initiative aims to foster innovation while ensuring investor protection.

A government statement emphasized that the UK remains “open for business — but closed to fraud, abuse, and instability.” It confirmed that final legislation would be introduced as soon as industry feedback on the draft rules is reviewed.

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Toward a Global Crypto Hub

The Treasury reiterated the UK’s ambition to become a leading global hub for digital asset technologies, a goal that echoes similar priorities set by the previous Conservative-led administration.

Earlier consultations in 2023 proposed bringing a wide range of crypto activities — such as trading, stablecoin issuance, and exchange operations — under domestic regulatory oversight. The latest draft rules move that vision closer to becoming law.

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