By coinnews 
The UK government is moving forward with its plans to regulate the crypto industry. On April 29, the British government released a draft referred to as “Regulatory regime for cryptoassets (regulated activities) – Draft SI and Policy Note” on their offficial website.
The 27-page proposed law aims to officially regulate crypto activities such trading exchange operations, stablecoin issuance, custody activities as well as purchase and sale of cryptoassets and providing services as a staking provider.
Any companies that wish to engage in these activities will need to have received approval from the Financial Conduct Authority (FCA), the regulatory body overseeing financial services firms and markets in the UK,
In the draft, “qualifying cryptoassets” are digital tokens that are fungible and can also be transferred.
The proposal also creates a special category of stablecoins with “qualifying stablecoins”—tokens” pegged to traditional currencies like the pound or the U.S. dollar, which are designed to maintain a stable value via reserves of fiat money or other assets.
If the rules are approved, anyone who operates a crypto trading platform or puts out a stablecoin in the U.K. will have to comply with strict standards.
Crypto custodians — companies that store their customers’ crypto — will also come under regulation to prevent assets from being put at risk.
Second, new regimes to address market abuse and to guarantee transparent disclosures in relation to crypto products are also in the pipeline.
Before formally establishing the regulations, the government is releasing this draft to solicit technical comments from the public. It has requested all feedback be turned in by May 23, 2025.
The aim, the Treasury said, is to protect consumers, encourage innovation, and cement the U.K.’s status as a leading global financial center — a position that would now definitively include digital assets.
Subsequent rules relating to crypto market abuse and disclosure obligations will be released separately.