New Crypto Rules will Unlock UK as Global Digital Asset Hub: Chancellor

UK Chancellor Rachel Reeves said on Monday that new, soon-to-be unveiled crypto rules in the UK will make the country a global hub as she pledged her support to firms that make the country their home.

The Chancellor said that new regulation, that will come into force in 2027, will be proportionate and ensure that consumers are protected, while balancing innovation with these needs so that the UK becomes an attractive target for digital asset businesses and investment.

Reeves promised that cryptoassets will be brought into scope of similar rules that other regulated financial products, such as stocks and shares, have. This means that the FCA will be in charge of regulating the sector, requiring the same transparency standards as from other asset classes.

The FCA recently launched the world’s first stablecoin sandbox to establish rules for sterling-backed stablecoins and lent its support to an industry-led initiative that aims to create disclosures for the decentralised industry.

Reeves said the FCA’s regime will support “responsible innovation, ensure open and competitive markets, and promote the UK as a destination of choice for digital asset businesses.”

She added, “Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world leading financial centre in the digital age. By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.”

The news comes as the government continues to negotiate with the US government about equivalence with the Genius ACT and its broader crypto asset perimeters, through the Transatlantic Taskforce.