The UK government has released consultation papers regarding new legislation aimed at the crypto industry, introducing regulatory frameworks for activities including the operation of crypto trading exchanges and the issuance of stablecoins. This legislation is designed to enhance market integrity and address issues like market abuse and disclosures.

The proposed regulations build on the Financial Services and Markets Act of 2023, which provided the treasury with authority to develop new regulations for the crypto sector. The UK is currently trailing behind the European Union, which implemented its own dedicated legislation, Markets in Crypto Assets (MiCA), last year.

Finance Minister Rachel Reeves addressed the Innovate Finance Global Summit, emphasizing that these new rules aim to support the UK’s economic ambitions and provide a favorable environment for digital asset firms to invest and innovate. Reeves noted that the UK will collaborate with the United States to foster the responsible growth of digital assets. The Treasury has invited technical feedback on these proposals until May 25, with plans to publish additional rules on market regulations shortly.

For more details, read the full article on CoinDesk: UK Regulator Intends to Start Authorizing Crypto Firms in 2026.