Senior associate James Broomhall has provided comment in Law360 on the potential impacts of the latest draft crypto and digital asset regulations announced by Chancellor Rachel Reeves, discussing that although further refinement is needed, they are a step in the right direction for the UK in its ambition to become a global crypto hub.

“The UK’s draft legislation marks a clear move toward a bespoke regime for cryptoassets, with defined activities like trading, custody, and staking regulated under FSMA. This is not a simple lift-and-shift from securities law, the tailored approach and detailed exclusions show awareness of the sector’s unique structure.

“While the EU’s MiCA still offers the advantage of a single market, the UK’s framework now provides comparable clarity and structure. The real differentiator will be the FCA’s implementation. If it’s proportionate and responsive, the UK could remain competitive.

“Importantly, overseas firms targeting UK consumers will now be within scope. This brings welcome consumer protection but also means foreign firms must reassess their access strategies.

“The law is ambitious and consumer focused. It’s generally well calibrated, but some areas like the treatment of DeFi or developer roles may need further refinement to avoid unintended consequences.

“Overall, the regime aligns structurally with the EU more than the US, while politically signalling transatlantic cooperation. If executed well, it could support the UK’s ambition to be a global fintech and crypto hub.”

James’ comments were published in Law360, 2 May 2025.