UK and EU tighten crypto rules in 2025

The regulatory landscape for investment and crypto assets in 2025 is shifting quickly, especially in the UK. No fluff—just facts. The UK government and financial regulators are actively shaping new rules, with HM Treasury and the FCA leading the effort to bring crypto activities into a tighter, more structured framework. Meanwhile, the EU’s existing MiCA regulation continues to roll out, but no major new proposals surfaced this year.

UK Regulatory Developments in 2025

In the UK, things are moving fast. On April 29, 2025, HM Treasury published a draft statutory instrument, the Financial Services and Markets Act 2000 (Cryptoassets) Order 2025. This amends previous legislation to define what qualifies as cryptoassets and stablecoins, and more importantly, to specify which activities will be regulated. This includes operating a crypto exchange or issuing stablecoins—those are now specified investments. They also plan to introduce rules around market abuse, disclosures, and operational standards. This is real leverage to control the space and protect consumers.

“This is real leverage to control the space and protect consumers.”

Just a few days later, on May 2, the FCA published a discussion paper seeking feedback on proposed rules for stablecoins, crypto trading platforms, DeFi, and lending. The deadline for feedback is June 13, which means we’ll see concrete proposals soon. The FCA is being cautious—building on existing regulations but tailoring them for crypto’s unique risks. They want transparency, operational resilience, and consumer protection to be front and center. No surprise there—regulation is the only way to avoid chaos and protect your investments.

Phased Implementation and Cross-Border Oversight

By the way, they also say this regime will be phased in. So, stablecoins and crypto exchanges will be first in line, with other activities to follow. And they’re watching activity both within the UK and overseas, trying to catch the cross-border nature of crypto. This is important because it shows the UK’s intention to control not just domestic firms but also foreign players targeting UK consumers.

The EU and US Regulatory Outlook

In contrast, the EU’s MiCA regulation keeps rolling forward, but no fresh proposals appeared in 2025’s first half. The EU is focused on implementation, which is good, but it also means the US is watching from the sidelines. For now, the US isn’t making major regulatory moves—at least, not publicly. But that can change fast, especially if the UK’s framework proves effective.

Implications for Investors and Industry

So, what does this mean for you? It’s simple. The UK’s tightening rules signal that regulators want crypto and investment activities to be more transparent and resilient. It’s no longer a wild west; it’s about creating a level playing field. If you operate in crypto, you better prepare for these standards. If you’re an investor, you should pay attention—regulation reduces risk, but it also means more compliance and less room for shortcuts.

And let’s move on—this is not just about regulation for regulation’s sake. It’s about making the space safer and more predictable. People are embarrassed or ashamed to talk about money, but maybe we should apply these theories: clear rules, transparent operations, and real enforcement. That’s how we protect our investments and avoid losing money on schemes that look good but aren’t.

Looking Ahead: 2025 and Beyond

In the end, 2025 will be remembered as the year when the UK took significant steps to tame crypto’s wild side. The US should watch carefully because regulation is shaping the global scene. Do these new rules make the crypto space safer? Maybe. But they also mean more work for firms and investors alike. So, ask yourself: are you ready to adapt to a more regulated environment?

What do you think? Are these proposals enough? Or are they just the beginning? Comment! We read you. Read more articles like this; you’ll find many interesting ideas to keep your money safe and grow smarter.

Miles Corbin

Investor and financial advisor for 12 years. I like to open the eyes of my clients and here I intend to do so with all of you who read The Domain Blog. I like to be on the cutting edge of everything related to the finance industry, investing, and financial planning and management in general. My goal is always to eliminate any hint of “guru” promises and to take a serious approach to industry news.