The United Kingdom’s Treasury and Chancellor of the Exchequer, Rachel Reeves, have proposed new crypto rules aimed at supporting innovation while cracking down on fraudsters. In an April 29 notice, the UK government announced draft rules for cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), that would bring crypto exchanges, dealers, and agents in line with regulations, as many residents were exposed to risky firms and scams. The proposal cited discussions with US government officials, including a proposed US-UK cross-border sandbox from the Securities and Exchange Commission’s Hester Peirce. “Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” said the notice. The government will bring forward final cryptoasset legislation at the earliest opportunity, following engagement on the draft provisions with industry. Treasury and Reeves said the UK was committed to making the country a global hub for digital asset technologies, referencing the goals of the previous government under the Conservative Party. A 2023 consultation paper from Treasury proposed bringing a wide range of cryptoasset activities — including trading and issuing stablecoins — in line with UK regulations. In a statement shared with Cointelegraph, Ian Silvera, the associate director for the self-regulatory trade association CryptoUK, called the government announcement a very much welcomed and a big victory for crypto firms. However, he added that the industry could also benefit from regulatory clarity on liquid staking and DeFi. The FCA plans to publish final rules on crypto sometime in 2026, setting the groundwork for the UK regulatory regime to go live. The roadmap to greater regulatory clarity in the UK could follow the European Union, which started to implement its Markets in Crypto-Assets (MiCA) framework in December.