UK Unveils New Crypto Rules – Here’s How They Differ From US Regulations

• Draft legislation expands oversight of crypto firms while promoting innovation through the Digital Securities Sandbox.

• Policies like exempting overseas stablecoins may make the UK more attractive to crypto businesses than the U.S.

Despite the fact that the UK Treasury confirmed the crypto staking ruling effective January 31, as Crypto News Flash (CNF) reported, the UK government has now introduced draft legislation to bring cryptocurrency exchanges, dealers, and agents under a comprehensive regulatory framework.

According to a Reuters report, Finance Minister Rachel Reeves stated that she had discussed crypto regulation with U.S. Treasury Secretary Scott Bessent during a visit to Washington last week. She stated that:

Under the new rules, crypto exchanges, dealers and agents will be brought into the regulatory perimeter—cracking down on bad actors while supporting legitimate innovation,” the finance ministry said in a statement following Reeves’ announcement.

This initiative seeks to curb misconduct and bolster investor confidence by enforcing standards for transparency, consumer protection, and operational resilience.

Finance Minister Rachel Reeves emphasized that these measures are part of the UK’s broader “Plan for Change,” aiming to position the country as a leading hub for financial innovation.

Embracing Innovation

As recent reports suggested, to support technological advancement, the UK has launched the Digital Securities Sandbox (DSS), a collaborative effort between the Bank of England and the Financial Conduct Authority.

Subsequently, as shared in a tweet, this draft of rules for the crypto industry touts greater collaboration with the U.S.

UK announces draft rules for crypto industry, touts greater collaboration with U.S. https://t.co/BbEH9rVZqK

— Karen Tso (@cnbcKaren) April 29, 2025

International Collaboration and Divergence

According to the Financial Times, the UK is actively engaging with international counterparts, including the United States, to harmonize regulatory approaches. Discussions between Chancellor Reeves and U.S. Treasury Secretary Scott Bessent have focused on establishing a cross-border regulatory sandbox and coordinating policy goals.

However, the UK’s approach diverges from the U.S. in certain aspects, such as exempting overseas stablecoin issuers from domestic regulations—a move aimed at enhancing the UK’s appeal as a fintech hub.

Market Implications

As Bitcoin plays a major role so far in market activities globally, including in the U.S. and UK, for example, a CNF article previously described that institutional demand and strong ETF inflows could fuel Bitcoin’s rise toward the $200K–$250K range.

Meanwhile, at the time of writing, Bitcoin (BTC) is trading at approximately $95,082, reflecting a modest intraday increase of about 0.67% and a weekly increase of 1.70%.

See the BTC price chart below to observe how the price pattern progresses, while the UK’s balanced regulatory approach may serve as a model for other jurisdictions seeking to foster innovation while safeguarding consumers.