UK Proposes First Full Crypto Rules With Eye on U.S. Collaboration

The UK has taken a decisive step toward regulating the cryptocurrency market, unveiling draft legislation aimed at bringing exchanges, dealers, and agents under formal oversight. Finance Minister Rachel Reeves introduced the rules on April 29, 2025, marking Britain’s most comprehensive effort to date to balance industry growth with consumer protection.

Crypto adoption in the UK has surged, with 12% of adults now holding digital assets—a threefold increase since 2021. This rapid growth has been accompanied by hacks, scams, and market volatility, exposing the need for clearer guardrails. The proposed framework seeks to address these challenges while maintaining the sector’s innovative potential.

The regulations signal the UK’s ambition to position itself as a global crypto hub, with particular emphasis on collaboration with U.S. counterparts. Market participants anticipate the rules could set a benchmark for other jurisdictions grappling with similar regulatory dilemmas.