The UK government on Tuesday, April 29, 2025, released a proposed law to regulate cryptocurrencies such as bitcoin and ethereum.
This step follows similar action taken by the European Union, which launched its own rules late last year.
The plan was revealed by the finance ministry, which said that companies handling crypto assets in the UK would now face clear rules.
These rules will cover areas such as how transparent they are, how well they protect customers, and how strong their internal systems are.
The government wants crypto businesses to follow similar standards as those in traditional finance.
The draft law also states that crypto exchanges, dealers, and agents will be under the same watch as other financial firms.
This is expected to reduce illegal activities in the sector while helping genuine businesses grow.
This announcement comes after the EU introduced its own set of rules, known as the Markets in Crypto-Assets Regulation (MiCA), which became active in December 2024.
Now, the UK is taking steps to develop its own system, but it is also looking to work with other countries, especially the United States.
UK Finance Minister Rachel Reeves, who spoke during a financial technology event in London, mentioned that she recently spoke with US Treasury Secretary Scott Bessent.
According to her, both countries will continue to talk about how to manage the crypto space, and more discussions will take place in June during a joint meeting between UK and US regulators.
The number of people using crypto in the UK is growing. Around 12 percent of UK adults now hold or have held digital currencies.
This is a big jump from 2021, when only four percent had done so.
