UK Finance Minister Rachel Reeves has announced plans to introduce mandatory regulation of the cryptocurrency industry. The new rules will equate cryptocurrencies with securities, following the US approach. British authorities intend to cooperate with US regulators, discussing the details of the legislation. At the same time, the UK approach will differ from the European Markets in Cryptoassets Regulation (MiCA).
Crypto exchanges, dealers, and agents dealing with UK customers will be subject to regulation. They will have to meet standards of transparency and consumer protection.
During the development of the project, the government is considering the increasing popularity of such assets: the share of the British, who owns cryptocurrencies, has increased from 4% to 12% over the previous years.
The final approval of the document is scheduled for the end of this year. The Bank of England, headed by Andrew Bailey, maintains a cautious stance on the industry, emphasizing the risks for investors. Lawyers, in turn, note that the law will create a clear framework for the industry, ensuring stability and consumer protection.