Most countries across the globe are working to come up with friendlier crypto regulations. As per recent developments, the the United Kingdom (UK) is ready to take up a move at reforming its crypto regulations. The main aim of these new regulations is to bolster web3 growth and potentially protect consumers.
UK’s new regulations are also set to align with the U.S approach to crypto assets with an aim to facilitate cross-border trade. The move has faced enthusiasm from some industry groups, while others are skeptical about the new regulations.
UK’s Move to Reform its Crypto Regulatory Framework
Digital assets require clear regulatory frameworks to operate efficiently and curb out bad actors. While the UK has been rather ‘laid back’ in terms of taking bold moves in the crypto regulatory sector, their counterparts U.S have made bigger strides in bringing in the much clarity that’s needed in this sector. Recent developments show that the U.S SEC Crypto Task Force is conducting direct dialogues with lead consumers in order to facilitate custom-tailored regulations.
But, the United Kingdom has also decided to not be left behind anymore. On April 29, 2025, UK announced its plan to reform its digital assets regulations. The country published its draft crypto legislation touting aims to drive web3 growth and protect consumers.
“Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers,” Rachel Reeves, the Chancellor of the Exchequer, remarked in an official press release.
She further added that “robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.”
UK’s new regulations are highly inspired by the U.S. The press release by the UK confirmed that Reeves held in-person discussions with the US Treasury Secretary, Scott Bessent. They discussed innovative opportunities such as collaborating on digital securities with proposals for a transatlantic sandbox for digital securities put forward.
British Treasury’s Support for Pro-Crypto Developments
The UK Treasury seems to be in full support of pro-crypto regulations. With the new crypto regulation set to follow, the financial institution is putting up a clear message to the world. However, the country will not allow any form of crypto related frauds on its soil.
“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” the press release read. The UK’s fight against bad actors is crucial as rug pulls, phishing scams and Ponzi schemes rise in the crypto sector.
A 2025 report by Chainalysis shows that 2024 recorded a drop in value received by illicit cryptocurrency addresses to $40.9 billion. However, 2025 could be worse if top global economies like the UK do not make effort to curb bad actors. Q1 of 2025 has been associated with various crypto scams. The most notable is the $1.4 billion ByBit hack which became the largest hack in the history of crypto.
Critics to UK’s Plan to Create Clear Crypto Regulations
With stricter regulations and commitment to drive web3 growth, the UK could position itself as a crypto hub in Europe. However, the nation’s recent move has faced criticism.
“The UK wants to become a world leader in digital assets. This is funny because the UK can’t lead in anything. Everyday millionaires and entrepreneurs are fleeing the UK because its become the most depressing lower class socialist state, “ Layah Heilpern, Host of The Layah Heilpern Show wrote on X.
The Crypto Professor also dubbed UK’s move as “delusional.” He said; “The UK can barely operate the basics, yet they want to lead the digital era? Delusional.”
Despite being late, we still can’t rule out the UK from becoming a world leader in digital assets. The government is set to issue an actionable plan to reform its crypto regulations by July 15. 2025.
