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On April 29, UK Finance Minister Rachel Reeves unveiled plans for a \u201ccomprehensive regulatory regime\u201d aimed at making the country a global leader in digital assets.<\/p>\n
Under the proposed rules<\/a>, crypto exchanges, dealers, and agents will be regulated similarly to traditional financial firms, with requirements for transparency, consumer protection, and operational resilience, the UK Treasury said<\/a> in a statement released following Reeves\u2019 remarks.<\/p>\n Per the statement, the Financial Services and Markets Act 2000 (Cryptoassets) Order 2025 introduces six new regulated activities, including crypto trading, custody, and staking.<\/p>\n Rather than opting for a light-touch regime similar to the EU\u2019s Markets in Crypto-Assets (MiCA)<\/a>, the UK is applying the full weight of securities regulation to crypto, according<\/a> to UK-based law firm Wiggin. That includes capital requirements, governance standards, market abuse rules, and disclosure obligations.<\/p>\n \u201cThe UK\u2019s draft crypto regulations represent a meaningful step toward embracing a rules-based digital asset economy,\u201d Dante Disparte, chief strategy officer and head of global policy at Circle, told Cointelegraph.<\/p>\n \u201cBy signaling a willingness to provide regulatory clarity, the UK is positioning itself as a safe harbor for responsible innovation.\u201d<\/p><\/blockquote>\n Disparte added that the proposed framework can provide the predictability needed to \u201cscale responsible digital financial infrastructure in the UK.\u201d<\/p>\n Related: <\/strong><\/em>Revolut doubles profits to $1.3B on user growth, crypto trading boom<\/strong><\/em><\/a><\/p>\n Vugar Usi Zade, the chief operating officer (COO) at Bitget exchange, also expressed optimism regarding the new regulations, claiming that it \u201cis a net positive\u201d for the industry.<\/p>\n \u201cI think a lot of companies recently exited or hesitated to enter the UK because they were not clear about what activities, products, and operations need FCA authorization. Firms finally get clear definitions of \u201cqualifying crypto assets\u201d and know exactly which activities\u2014trading, custody, staking or lending\u2014need FCA authorization.\u201d<\/p>\n For exchanges, including Bitget, the UK\u2019s draft rules mean they need full approval from the Financial Conduct Authority (FCA) to offer crypto trading, custody, staking, or lending services to UK users.<\/p>\n The rules also give companies two years to adjust their systems, like capital and reporting. \u201cMapping each service line to the new perimeter adds compliance overhead, but that clarity lets us plan product roll\u2011outs and invest in local infrastructure,\u201d Zade said.<\/p>\n The new draft regulations reclassify stablecoins as securities, not as e-money. This means UK-issued fiat-backed tokens must meet prospectus-style disclosures and redemption protocols. Non-UK stablecoins can still circulate, but only via authorized venues.<\/p>\n Zade claimed that excluding stablecoins from the Electronic Money Regulations 2011 (EMRs), which keeps them out of the e\u2011money sandbox, could slow their use for payment.<\/p>\n However, Disparte, whose firm is the issuer of USDC (USDC<\/a>), the world\u2019s second-largest stablecoin by market capitalization, said predictability is key to fostering responsible growth in the UK.<\/p>\n \u201cWhat matters most is predictability: a framework that enables firms to build, test, and grow responsibly\u2014without fear of arbitrary enforcement or shifting goalposts. If realized, this could mark a pivotal moment in the UK\u2019s digital asset journey.\u201d<\/p><\/blockquote>\n Related: <\/strong><\/em>UK regulator moves to restrict borrowing for crypto investments<\/strong><\/em><\/a><\/p>\n Among the biggest changes as part of the new draft rules is the territorial reach. Non-UK platforms serving UK retail clients will need the FCA authorization. The \u201coverseas persons\u201d exemption is limited to certain B2B relationships, effectively ring-fencing the UK retail market.<\/p>\n Crypto staking enters the perimeter as well. Liquid and delegated staking services must now register, while solo stakers and purely interface-based providers are exempt. New custody rules extend to any setup that gives a party unilateral transfer rights, including certain lending and MPC (multiparty computation) arrangements.<\/p>\n \u201cSome DeFi nuances still need fleshing out, but the direction is toward efficient, tailored compliance rather than blanket restriction,\u201d Bitget\u2019s Zade said.<\/p>\n He added that the broad \u201cstaking\u201d definition might sweep in non\u2011custodial DeFi models lacking a central provider. \u201cProposed credit\u2011card purchase restrictions\u2014though aimed at high\u2011risk use \u2014 could dampen retail participation in token launches,\u201d he said.<\/p>\n Furthermore, Zade said bank\u2011grade segregation rules for client assets could burden lean DeFi projects. \u201cFinal rule tweaks will need to mitigate these side effects.\u201d<\/p>\n The FCA\u00a0plans to publish final rules<\/a> on crypto sometime in 2026, setting the groundwork for the UK regulatory regime to go live. The roadmap to greater regulatory clarity in the UK could follow the European Union, which\u00a0started to implement<\/a> its MiCA framework in December.<\/p>\nUK\u2019s new crypto rules are \u201cnet positive\u201d<\/h2>\n
UK to require FCA approval for foreign crypto firms<\/h2>\n