Catenaa, Wednesday, April 30, 2028-The United Kingdom (UK) on Tuesday (29) unveiled draft legislation aimed at tightening oversight of crypto assets, seeking to curb scams and establish global fintech leadership through international cooperation, including a proposed sandbox with the United States.
Chancellor of the Exchequer Rachel Reeves introduced the legislation during UK Fintech Week, outlining measures that would bring crypto exchanges, custodians and dealers under traditional financial regulation.
The rules would require firms handling assets like Bitcoin and Ethereum to adhere to transparency, consumer protection and operational resilience standards.
The legislation follows a sharp rise in crypto adoption. The Financial Conduct Authority said 12% of UK adults have owned cryptoassets, up from 4% in 2021.
But this growth has been accompanied by rising scams and company failures.
The new framework would impose “robust compliance standards”, ban misleading promotions, and ensure crypto companies working with UK customers meet the same requirements as banks and financial firms.
Reeves said the move will “boost investor confidence, support the growth of fintech and protect people across the UK.”
The draft law follows a 2023 Treasury consultation and complements the Crime and Policing Bill , which expands the ability of courts to seize illicit digital assets. Authorities have already frozen £6 million in crypto tied to criminal activities, including £1.5 million in a single Coinbase wallet.
Reeves also confirmed talks with US officials to establish a cross-border sandbox , allowing fintechs to test digital products under shared oversight. Final legislation is expected after stakeholder feedback.
