The United Kingdom Treasury has just brought on a new crypto bill into play to protect investors and block the bad actors. This comes as the U.S. speeds up on digital asset legislation, with the country keen to keep up with their growth.
UK Treasury Unveils New Crypto Bill
According to Reuters, the UK Treasury has confirmed plans that begin the regulation of cryptoassets from October 2027. The legislation will bring crypto-related companies under existing financial services laws. This would help businesses understand the rules and keep out those trying to break them.
The draft bill was first published in February this year and has made some small changes since then. The government calls these changes technical. However, some lawyers think more changes might be needed for the system to work well.
This plan follows the U.S. passing its first major crypto law, the GENIUS Act, in July. British policymakers say that their new crypto bill borrows from that model.
Interest in digital assets has grown since President Donald Trump came back into office with a crypto-friendly approach. Britain stressed the need for better cooperation across borders. They announced plans to work with the U.S. on digital assets and capital markets through a dedicated task force.
Is Britain Just Playing Catch-Up?
The new rule from the UK is mostly in a bid to keep pace with growing adoption across the board. Earlier this month, the UK gave formal recognition to digital assets as property under national law after the crypto bill received royal assent. The shift puts crypto and stablecoins on similar legal footing with more traditional assets.
Alongside new market bills, the government is considering a ban on political donations made through crypto and new market regulations. Ministers are worried about the lack of transparency and the difficulty in tracing the sources of these donations. This proposal adds to the ongoing debate about regulations.
Meanwhile, Finance Minister Rachel Reeves said the proposed new law would set clear rules. It would also increase consumer protections and keep dodgy actors from taking advantage of regulatory gaps.
Also, the Bank of England is going to develop particular regulations concerning trading venues and market abuse prevention. They have also proposed regulations affecting stablecoins used in daily payments. Both the Bank and other regulators intend to finalize these rules by the end of 2026.
UK banks have reported that losses from crypto-related investment scams increased 55% compared to the year before. This is an example of consumer risks that regulators say need to be addressed.
Source: https://coingape.com/uk-treasury-introduces-crypto-bill-following-us-playbook-is-it-already-too-late/
