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Hey all, Liam here.

The United Kingdom has officially completed its about-face on digital assets.

On Monday, the UK’s Chancellor of the Exchequer, Rachel Reeves, declared the Treasury was devising clear rules of the road for the digital assets industry.

Crypto companies have long had to register directly with the UK’s financial watchdog, the Financial Conduct Authority, before operating in the country.

But this new regime is expected to treat the market like any other traditional financial market or asset class.

The objective?

Lucy Rigby, economic secretary to the Treasury, said, “We want the UK to be at the top of the list for cryptoassets firms looking to grow.”

The rules are expected to be ready by the middle of next year and enacted by 2027, and will likely follow the outlines of a government memo issued in April.

Rigby added in an interview with The Financial Times that clearer rules of the road will encourage investment, bolster growth, and protect users — a key talking point for a newly formed pro-crypto lobbying group as well.

Gurinder Singh Josan, a Labour Party backbencher and co-chair of the revived All-Party Parliamentary Group for Crypto and digital assets, told DL News in August that sluggish lawmaking was harming British consumers — a line echoing industry giants like Ripple and Kraken.

“That’s not just bad for jobs and investment, it also risks pushing UK consumers towards unregulated offshore providers,” Singh Josan said.

The swift embrace of digital assets among the UK’s political elite — with Reform Party leader Nigel Farage having been the loudest — occurred in record time.

Despite the occasional support from the likes of former Prime Minister Rishi Sunak, the region has historically been highly cautious of the volatile industry, with the FCA typically taking a defensive stance on all things crypto.

In September 2024, the FCA had scuppered 87% of all applications filed with the agency due to money laundering concerns.

In 2025, on the back of the US’ warming to the sector and targeted lobbying, that’s all changed.

Indeed, the two jurisdictions have been working closely on regulating digital assets since the establishment of a Transatlantic Taskforce in September.

Eduardo Hotto, chief marketing officer of the British identity firm Cheqd, said the developments aren’t a complete reversal — but rather a translation of digital assets into a broader financial market.

“The UK has clearly shifted its tone on digital assets,” he told DL News.

“Until now, banks, intermediaries, and asset managers have treated digital assets as operationally expensive as much as legally uncertain.”

Liam Kelly is DL News’ Berlin-based DeFi correspondent. Have a tip? Get in touch at liam@dlnews.com.