Mind The Gap: The U.K.’s New Crypto & Stablecoin Regulations

London, United Kingdom- Mind The Gap Sign: Underground in Central London.
Fintech Week in London last week saw U.K Chancellor Rachel Reeves announcing that firms offering cryptoasset services will be subject to new clear rules aimed at boosting investor confidence and driving growth.
It is estimated that 12 percent of U.K. adults now own or have owned crypto, up from just four percent in 2021, and the Government is concerned about the risks that cryptoassets present to retail customers, and in particular scams and fraud.
Reeves said, “Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the U.K.”
Crypto firms with U.K. customers will also have to meet clear standards on transparency, consumer protection, and operational resilience, just like firms in traditional finance.
The long-awaited new rules, published by HM Treasury just before Fintech Week, are being deployed as a Statutory Instrument (SI) under the Financial Services and Markets Act 2023 are currently in draft and open for comments until 23rd May.
The new rules were shortly followed by the Financial Conduct Authority’s (FCA’s) DP25/1: Regulating cryptoasset activities, which is also open for public comment until June 13th.