UK Unveils Crypto Regulation Plan to Foster Innovation and Combat Fraud

The UK government has unveiled a fresh set of proposed regulations for digital assets, aiming to balance technological advancement with stronger protections against financial misconduct.

Chancellor Rachel Reeves and the Treasury introduced the measures as part of an effort to bolster innovation in the crypto space while addressing growing concerns around fraud and unregulated activity.

The draft framework, revealed on April 29, outlines new standards for crypto platforms and intermediaries such as exchanges and brokers.

These entities would be required to comply with stricter oversight in response to the high number of UK residents falling victim to unlicensed or deceptive operations.

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The plan also reflects ongoing cooperation with U.S. counterparts, including exploratory work on a joint regulatory testing environment involving the SEC’s Hester Peirce.

According to the government, the initiative reinforces the message that the UK welcomes legitimate crypto ventures but is firmly opposed to manipulation and financial instability. Officials noted that finalized legislation would be introduced as soon as consultations with industry stakeholders are completed.

Alexander Stefanov