Now it is the turn of the UK Treasury to announce its plans to regulate the cryptocurrency industry. Their goal is to fold this new sector into the traditional banking regulatory framework. These blueprints include regulations on stablecoin issuance, as well as policies to curb market manipulation.

The UK intends to collaborate closely with the US, fostering a partnership for responsible growth in the digital asset space. Chancellor Rachel Reeves plans to leverage the upcoming UK – US Financial Regulatory Working Group to further discussions on digital assets and relevant regulations.

The UK Treasury has released a consultation on the detailed proposed rules. They actually welcome industry comments, but don’t delay—submissions are due May 23! The future regulations as outlined would be treading dangerous ground that exactly follows the US regulatory line on stablecoins and includes an exemption for foreign issuers.

Currently in the UK, the pace of regulation is lagging behind the EU. That all-encompassing MiCA rulebook entered into force in the EU last year. In the UK, the UK Treasury recently proposed clear standards for consumer protection and operational resilience for crypto firms that operate in the UK.

"Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability," - The Chancellor

From now on, crypto firms operating in the UK will have to meet the same standards expected of traditional financial institutions. This decision follows just over a year after the administration first announced its plans to impose cryptocurrency regulations.

"Under the new rules, crypto exchanges, dealers and agents will be brought into the regulatory perimeter — cracking down on bad actors while supporting legitimate innovation. 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," - The Treasury

In her first address, Chancellor Rachel Reeves committed the government to publishing the first-ever Financial Services Growth and Competitiveness Strategy. Save the date for July 15th! This strategy will outline specific ways to reinforce the expansion of financial services.

In October 2023, HM Treasury announced their detailed proposals for a new enabling regulatory framework. This framework was designed to regulate the UK’s financial services involving crypto assets such as stablecoins. The UK – US Financial Regulatory Working Group will offer a forum for ongoing direct exchanges. It will examine how all digital assets are regulated across the United States.

"The government remains committed to making the UK a global hub for digital asset technologies, aligned with the Plan for Change to drive growth, innovation and security," - The Chancellor