The United Kingdom’s government is working with counterparts in the United States to develop cryptocurrency regulations.

The Plan of Change or draft crypto rules announced by the U.K. government on April 29 will bring crypto exchanges, dealers and agents under regulatory review to foster innovation and punish bad actors. The plan comes after U.K. Chancellor of the Exchequer Rachel Reeves consulted with U.S. Secretary of the Treasury Scott Bessent to develop regulations to support crypto businesses on both sides of the Atlantic, according to the release. 

Under the U.K. order, crypto entities must: 

• Get clearance from the U.K. government’s financial watchdog, Financial Conduct Authority (FCA), before engaging in crypto trading or crypto custodial services; 

• Include existing anti-money laundering frameworks in their operations; and 

• Maintain high standards of currency stability while issuing stablecoin for payments. 

The FCA is considering banning consumers from using credit lines like credit cards and personal loans to acquire crypto assets, according to the May 2 release. 

Nearly 12% of British citizens held crypto assets in 2025, compared with 4% in 2021, according to an April FCA survey. 

Crypto regulation expands 

The new rules surrounding crypto will give investors and developers confidence to create new tools and solutions, according to the U.K. government’s release. 

“It’s a huge step forward in digital finance for the U.K. to finally have the publication of the … draft on how to progress in crypto assets,” Riccardo Tordera-Ricchi, director of policy and government relations for the U.K. at The Payments Association, told Bank Automation News. “This clearly signals intent from the government to promote a fertile environment in the U.K. for crypto assets.” 

As the crypto industry becomes more mainstream, regulators across the globe must enact rules to give investors and users confidence to drive adoption of the asset class, Sean Viergutz, partner in the financial services division at consultancy PwC, previously told BAN. 

Governments need to maintain the momentum of regulating digital assets and bring stablecoin into the payments perimeter, Tordera-Ricchi said. 

Major FIs like Visa and Mastercard are also hopeful of well-defined regulations for stablecoin as they have started to innovate with the technology to settle payments.