The UK Treasury has announced a major push to turn Britain into one of the world’s most attractive destinations for cryptocurrency and digital asset firms, unveiling plans for a new phase of rule-making aimed at providing regulatory clarity and encouraging investment.

The initiative reflects a strategic effort by the government to balance innovation with consumer protection, as competition intensifies among global financial centres seeking to host the fast-growing crypto industry.

Under the proposals, the Treasury intends to bring a wide range of crypto-related activities within a clear regulatory perimeter, covering areas such as trading platforms, custody services, stablecoins and market abuse.

Officials said the goal is to replace the current patchwork of interim rules with a comprehensive framework that gives firms certainty about how they can operate in the UK, while ensuring high standards of transparency, resilience and risk management.

The approach is designed to make Britain more attractive to legitimate crypto businesses without compromising financial stability.

The new rule-making push builds on earlier commitments to establish the UK as a centre for financial technology and digital innovation.

Treasury officials emphasised that clear and proportionate regulation is essential to draw serious companies, protect consumers and deter bad actors.

By setting out predictable rules and aligning oversight with international standards, the government hopes to encourage firms to base operations, investment and talent in Britain rather than moving to rival jurisdictions.

Industry figures have broadly welcomed the direction of travel, noting that uncertainty has been a major obstacle for crypto companies considering the UK. They argue that a well-defined regulatory environment could help London retain its status as a leading global financial centre while adapting to new forms of finance.

At the same time, regulators are expected to maintain a firm stance on issues such as fraud, money laundering and market integrity as the framework takes shape.

The Treasury said further consultations and detailed legislation will follow, with the aim of implementing the new regime in stages.

If successful, the strategy could mark a significant shift in how Britain positions itself in the global digital asset economy, combining openness to innovation with robust safeguards for markets and consumers.