The United Kingdom has taken a significant step toward regulating cryptocurrencies, releasing a draft law outlining how digital asset businesses like Bitcoin will be overseen. This move aligns the UK with global trends in stricter crypto regulation and aims to create a safe and competitive environment for innovation while ensuring investor protection and stability. The draft, published by the UK Treasury, outlines how various activities in the digital asset market — including trading, lending, and custody services — will fall under the jurisdiction of the Financial Conduct Authority (FCA). This sets clear standards for firms operating in this space. Specifically, the legislation targets Bitcoin, demonstrating the government’s focus on mainstream cryptocurrencies. The aim is to align crypto businesses with traditional financial rules, including compliance with anti-money laundering (AML) and consumer protection measures. Additionally, the draft proposes that exchanges and custodians must adhere to the same standards as banks and traditional institutions. This move aims to reduce risks of fraud, hacking, and market abuse – concerns prevalent in the cryptocurrency sector. The UK’s approach aligns with global trends toward tighter crypto regulations, mirroring the European Union’s MiCA legislation. This draft law will undergo consultation before being implemented. The final legislation could position the UK as a global leader in compliant crypto innovation.