UK to Introduce Crypto Regulations in 2025: A New Era for Digital Assets
The UK government is preparing to unveil its long-awaited crypto regulations by early 2025, aiming to provide clarity and support for the rapidly growing digital asset market.
By Tylt Editorial Team
UK government plans to draft new crypto regulations by 2025.
Stablecoins will be governed under a separate framework, not the existing Payment Services Act.
UK's crypto market has grown to include over 2.5 million holders, with $170 billion in market size.
The United Kingdom is setting its sights on formalizing crypto regulations as part of its broader vision for the digital economy. Newly elected Prime Minister Keir Starmer’s government has announced plans to draft a regulatory framework specifically for the cryptocurrency industry by early 2025. The decision comes after months of delay due to general elections earlier this year.
In a significant policy shift, stablecoins—digital currencies pegged to fiat money—will not be regulated under the current Payment Services Act. Instead, they will be integrated into a new set of laws aimed at ensuring both consumer protection and financial stability. Tulip Siddiq, Economic Secretary to the Treasury, emphasized that this updated framework is necessary to align with the rapid pace of innovation in the sector.
While the UK’s legislative process is underway, it lags behind its European neighbors. Earlier this year, the European Union implemented the Markets in Crypto-assets (MiCA) regulations, providing comprehensive guidelines to safeguard users and stabilize the market. France, Switzerland, and Liechtenstein have also introduced their own tailored crypto policies.
The urgency for a UK regulatory framework is underscored by the explosive growth of its crypto market. Approximately 2.5 million adults—about 5% of the population—are involved in cryptocurrency trading or investments. The market size has reached $170 billion, with daily trading volumes hitting $8.5 billion. Moreover, venture capitalists invested over $1.9 billion into UK-based blockchain and crypto startups in 2022 alone.
Discussions around Central Bank Digital Currencies (CBDCs) are also gaining momentum. The Bank of England is currently in the design phase of a potential "digital pound," with ongoing consultations involving industry stakeholders.
As the UK prepares to join the ranks of countries with dedicated crypto regulations, expectations are high that the framework will support innovation while ensuring consumer trust and market stability. Industry insiders hope this development will reaffirm the UK’s position as a global financial hub in the digital age.
