Rachel Reeves, the UK Finance Minister, announced plans for a "comprehensive regulatory regime for crypto assets" at a fintech event on Tuesday. The proposals seek to mold the UK into a “global hub for digital assets.” Second, they target the fast-growing and highly speculative crypto markets.
The UK has put out draft legislation. It outlines the regulatory regime for crypto exchanges, dealers and agents. The intention is to rein in bad actors while promoting real innovation in the growing digital asset marketplace.
Speaking at Innovate Finance’s annual global summit, Reeves called on UK regulators to tackle the “wild west of digital assets.” She reiterated how important international collaboration is, in particular with the United States. Such collaboration is crucial if the UK is to achieve its ambition of becoming a global hub for the digital asset sector.
"For the U.K. to be a world leader in digital assets, international cooperation is vital" - Rachel Reeves
By directly meeting their new counterpart, Scott Bessent, Reeves took a huge step to cementing these ties with the US. Together, they discussed a potential US-Japan trade deal and ways to cooperate on digital asset regulation. The UK wants to increase regulatory cooperation with the US to support the safe adoption of digital assets.
The UK's Treasury department released a statement following Reeves' remarks, detailing the scope of the new regulations. Crypto firms had to ensure their operations in the UK operate to high standards.
"Crypto firms with UK customers will also have to meet clear standards on transparency, consumer protection, and operational resilience — just like firms in traditional finance" - U.K.'s Treasury department
Yet Reeves was adamant that any regulatory framework must promote opportunity and innovation, not fundamentally alter the tech business landscape.
"Regulation must support business, not hold it back" - Rachel Reeves
