Chancellor Rachel Reeves has announced a sweeping set of new regulations aimed at bringing clarity, consumer protection, and fraud prevention to the UK's rapidly growing crypto sector.

As crypto ownership in the UK rises—12% of adults now own or have owned digital assets, up from just 4% in 2021—the government says regulation has lagged behind, leaving users vulnerable to scams and risky firms.

The new rules will bring crypto exchanges, dealers, and agents under formal regulation. Firms serving UK customers must meet strict standards for transparency, consumer protection, and operational resilience, aligning them more closely with traditional financial institutions.

Reeves also confirmed that the UK and US will collaborate on digital asset regulation through the upcoming UK-US Financial Regulatory Working Group, aiming to support innovation while ensuring responsible growth.

“Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK,” said Reeves.

Industry response has been positive. A spokesperson from trade body CryptoUK called the announcement “a big victory,” adding: “Rachel Reeves’ commitment to provide new and clearer rules for the digital assets industry is very much welcomed and a big win for our members, who have worked tirelessly for the UK to lead in crypto.”