United Kingdom to Emulate Cryptocurrency Approach of the USA
Keep Up with U.TODAY on Google News: According to Bloomberg, UK Chancellor Rachel Reeves has shared plans for a collaboration with the US on cryptocurrency regulation.
Reeves emphasizes the significance of international cooperation to secure the UK's dominance in the global digital asset market. This follows swift moves by the world's largest economy to embrace the crypto industry.
Robert Kiyosaki, author of 'Rich Dad Poor Dad,' has offered his opinion on the potential crash of Bitcoin to $300, and what investors should consider in such a scenario. Meanwhile, analysts have warned of a quantum threat to Bitcoin. XRP is predicted to make a groundbreaking leap in 2025, while the Shiba Inu (SHIB) bull run has reportedly been called off, and Ethereum (ETH) is said to be eyeing a $2,000 target. Last week, Reeves announced a meeting with Bessent to discuss the UK-US economic prosperity deal.
The UK's Cryptocurrency Regulatory Overhaul
On Tuesday, Reeves unveiled draft laws aimed at bringing exchanges and brokers into compliance. These rules aim to boost investor confidence and drive growth.
The proposed legislation classifies "qualifying cryptoassets" and "qualifying stablecoins" as specified investments. Under the new regime, activities such as operating a cryptocurrency trading platform, issuing stablecoins, custodying crypto, and arranging deals in crypto will require authorization from the Financial Conduct Authority (FCA).
However, decentralized finance (DeFi) projects with no central controlling party will not be subject to the authorization requirements.
The new regulatory framework is set to take effect in the UK by the end of the year.
#UK
Additional insights:
The UK's new cryptocurrency regulatory regime, rolled out through draft legislation on April 29, 2025, prioritizes consumer protection and institutional oversight. Key aspects include:
Regulatory Scope
- Covered activities: The scope encompasses operating crypto exchanges, dealing/arranging in crypto transactions, custody services, staking, and issuing qualifying stablecoins (fiat-backed tokens) [1][2][4].
- Geographic reach: Firms serving UK retail consumers must obtain authorization, regardless of their location. Exceptions apply for institutional customers not acting as intermediaries to retail users [1][4].
- Stablecoin rules: Issuers of UK-based qualifying stablecoins face authorization requirements, while custodians must adhere to FCA-like asset security standards [1][2][5].
Enforcement and Implementation
- Authorization: Crypto firms must seek authorization from the UK’s Financial Conduct Authority (FCA) to operate legally [2][4].
- Consumer protections: The legislation includes transparency, operational resilience, and anti-market manipulation measures mirroring traditional finance [2][5].
- Timeline: The FCA aims to finalize the rules by 2026 [3], with enforcement expected to follow shortly. The public is currently invited to provide feedback on the draft legislation [2].
This framework aims to establish the UK as a global fintech hub while minimizing risks from scams and unregulated platforms [5]. [1]-[5] represent cited sources for further reading.
- Rachel Reeves, UK Chancellor, has announced plans for a collaboration with the US on cryptocurrency regulation to secure the UK's dominance in the digital asset market.
- The proposed UK cryptocurrency regulatory overhaul aims to boost investor confidence, drive growth, and prioritize consumer protection.
- The draft laws classify "qualifying cryptoassets" and "qualifying stablecoins" as specified investments, requiring authorization from the Financial Conduct Authority (FCA) for activities such as operating a cryptocurrency trading platform or issuing stablecoins.
- Decentralized finance (DeFi) projects with no central controlling party will not be subject to the authorization requirements under the new UK regulatory framework.
- Robert Kiyosaki recently warned of a potential Bitcoin crash to $300 and highlighted the importance of considering different scenarios when investing in cryptocurrency.
- Analysts have predicted a groundbreaking leap for XRP in 2025, while the Shiba Inu (SHIB) bull run has reportedly been called off, and Ethereum (ETH) is eyeing a $2,000 target.
- The new UK regulatory framework, rolled out in April 2025, will address areas such as operational resilience, transparency, and anti-market manipulation to establish the UK as a global fintech hub.
- Crypto firms operating in the UK must seek authorization from the FCA to operate legally, and the public is currently invited to provide feedback on the draft legislation, with enforcement expected to follow shortly.
