UK Aligns With US Over EU in Crypto Regulation, Introduces New Rules

The UK has opted to align its cryptocurrency regulatory framework with the US rather than the EU, introducing stringent new rules aimed at bolstering investor confidence and consumer protection. Finance Minister Rachel Reeves unveiled the draft regulations on 29 April 2025, emphasizing Britain’s ambition to become a global leader in fintech innovation while ensuring market safety.

Compulsory oversight will now apply to crypto exchanges, dealers, and agents—a move triggered by surging retail participation. Cryptocurrency ownership among UK adults has tripled since 2021, reaching 12% of the population. This rapid adoption has coincided with increased vulnerability to scams, prompting regulatory intervention.

The ’Plan for Change’ initiative seeks to balance innovation with robust consumer safeguards. "We’re making Britain the best place to innovate—and the safest place for consumers," Reeves stated, framing the regulations as essential for sustaining the country’s competitive edge in financial technology.