UK Advances Crypto Regulation with Draft Rules Targeting Exchanges and Stablecoins

The United Kingdom has taken a decisive step toward establishing a comprehensive regulatory framework for digital assets. Draft legislation unveiled on Tuesday aims to bring cryptocurrency exchanges, dealers, and stablecoin issuers under formal oversight. Finance Minister Rachel Reeves positioned the move as part of Britain’s ambition to lead in fintech innovation while strengthening transatlantic collaboration.

The proposed rules mandate compliance for all firms serving UK customers, targeting both market integrity and consumer protection. This regulatory push follows growing global scrutiny of crypto markets after high-profile collapses exposed systemic vulnerabilities. The Treasury’s approach seeks to balance risk mitigation with support for legitimate innovation—a delicate equilibrium that will shape London’s competitiveness in the digital asset arena.