UK government to introduce new legislation to regulate crypto-asset industry

The UK government has unveiled new legislation to regulate the growing crypto-asset industry, Jurist News reported citing Finance Minister Rachel Reeves. This move follows FCA research showing that 12% of UK adults—about 7 million people—own crypto-assets. Currently, crypto businesses are overseen under Money Laundering Regulations, but the new laws will create a comprehensive framework to promote innovation while curbing misuse by bad actors.

The legislation will require crypto exchanges and major dealers to comply with clear rules, boosting investor confidence and supporting fintech growth. Reeves highlighted plans for collaboration with the US to align regulatory approaches and encourage responsible digital asset adoption. Industry experts have welcomed the changes, noting the new framework contrasts with the EU’s Markets in Crypto Assets Regulation (MiCAR) and improves upon the FCA’s restrictive registration process.

The UK government also plans to publish its first Financial Services Growth and Competitiveness Strategy in July, aiming to foster long-term sector growth. The legislation follows the Property (Digital Assets) Bill, which clarifies the legal status of digital holdings as personal property, addressing legal uncertainties around crypto-assets.