U.K. Strengthens Crypto Rules to Tackle Scams and Risky Firms

The U.K. government has unveiled a sweeping regulatory crackdown on cryptocurrency activities, targeting exchanges, dealers, and custodians with stringent new requirements. Treasury officials framed the 27-page draft legislation as a necessary step to curb fraud while maintaining London’s position as a global financial hub.

Cryptocurrency ownership among British households has surged in recent years, prompting regulators to establish clear guardrails for trading, stablecoin issuance, and staking operations. All firms must now secure approval from the Financial Conduct Authority before offering services to U.K. consumers.

Industry groups cautiously welcomed the framework but continue pushing for clarification on decentralized finance protocols and liquid staking derivatives. The measures reflect a growing international consensus that crypto markets require traditional financial oversight to mature.