According to Bloomberg, UK Chancellor Rachel Reeves has revealed that the UK will be working with the US on cryptocurrency regulation.
Reeves has stressed that international cooperation is crucially important in order to make sure that the UK maintains a leading position on the global digital asset scene.
This comes after the world’s largest economy swiftly moved to embrace the crypto industry.
Last week, Reeves announced that she had met with Bessent to discuss the UK-US economic prosperity deal.
The UK’s new regulatory regime
On Tuesday, Reeves also unveiled draft laws that are meant to bring exchanges and brokers into compliance. The new rules are supposed to boost investor confidence and drive growth.
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Under the proposed legislation, crypto exchanges and brokers will be regulated as traditional sectors such as investment banking and insurance.
“Qualifying cryptoassets” and “qualifying stablecoins” will be classified as specified investments.
Such activities as operating a cryptocurrency trading platform, issuing stablecoins, custodying crypto, and arranging deals in crypto will require authorization from the Financial Conduct Authority (FCA).
At the same time, decentralized finance (DeFi) projects with no central controlling party will not have to follow the authorization requirements.
The regulatory regime is expected to be established in the UK by the end of the year.
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