The UK government published draft legislation on 29 April 2025 to regulate cryptoassets. The new rules will require crypto exchanges, dealers, and agents to meet standards similar to those in traditional finance, enhancing consumer protection and driving growth.
The proposed regulations are part of the Plan for Change and will bring crypto firms into the regulatory perimeter. The draft legislation aims to protect consumers from fraud and risky firms, as the number of UK adults owning crypto has increased from 4% in 2021 to 12% in 2024.
The regulations will apply to firms offering crypto services to UK customers, ensuring they adhere to clear standards on transparency, consumer protection, and operational resilience. The government plans to finalize the legislation following industry engagement on the draft provisions.
The government has not specified a deadline for compliance but encourages firms to begin reviewing their operations in preparation for the upcoming regulatory changes. The Chancellor announced that the final cryptoasset legislation will be published at the earliest opportunity after industry consultations.
Source: HM Treasury, official publication, retrieved 2026-07-21