UK Finance Minister Rachel Reeves announced new rules for the regulated cryptocurrency sector aimed at creating a safe environment for digital assets.
Regulatory Plans for Crypto Assets
On April 29, 2025, UK Finance Minister Rachel Reeves unveiled plans for a 'comprehensive regulatory regime' aimed at making the country a global leader in digital assets. Under the proposed rules, crypto exchanges, dealers, and agents will be regulated similarly to traditional financial firms. The UK Treasury stated that the Financial Services and Markets Act 2000 introduces six new regulated activities, including crypto trading, custody, and staking.
Industry Response to New Rules
Vugar Usi Zade, COO of Bitget, expressed optimism about the new regulations, claiming they are 'a net positive' for the industry. He noted that firms now have clear definitions regarding activities that require FCA authorization. Zade highlighted that exchanges must secure full FCA approval for trading and custody services. Dante Disparte from Circle emphasized the importance of predictability in fostering responsible growth in the UK digital financial infrastructure.
Changes for Foreign Crypto Firms
One significant change in the new draft rules is regarding international platforms, which will have to obtain FCA authorization to serve UK retail clients. The overseas persons exemption is narrowed to specific B2B relationships. Additionally, staking services must now register, creating new compliance requirements for companies offering such services. The FCA plans to publish final rules in 2026.
The announced regulatory mechanisms are expected to provide a more predictable and safer environment for investments in crypto assets, fostering the sustainable growth of the sector in the UK.
