The United Kingdom has entered a new phase in the race of Global Crypto Laws 2025. The Bank of England (BoE) is preparing to publish a public consultation on November 10 and aiming to complete its stablecoin rulebook by the end of 2026.
Source: CryptoRover
The strategy centers on short-term government debt or bond-backed coins, similar to the system currently under construction in the United States. This has the benefit of every digital pound or dollar having real, safe backing.
Officials in London say the move will help the UK keep pace with the US, which has already taken big steps toward defining digital money rules.
How the US Set the Standard
The United States has already taken a lead with the GENIUS Act, passed in July 2025, the country’s first comprehensive law for stablecoins. It requires full reserve backing, regular audits, and strict anti–money-laundering compliance.
The CLARITY Act also clarifies how digital property is treated under securities and commodities legislation, minimizing overlap among agencies. The Anti-CBDC (CGDC) Act, on the other hand, blocks the Federal Reserve from issuing a central bank digital currency without congressional approval, maintaining citizens’ privacy of finances.
Combined, these bills have made the U.S. the envy of nations for clear and regulated crypto rule, with robust backing from the IMF and World Bank.
Why This Racing Matters
Stablecoins have become one of the fastest-growing parts of the crypto market, used for global payments and trading. Without consistent crypto laws, risks like fraud, manipulation, and bank-run-style crashes remain high.
The BoE’s Governor Andrew Bailey, who also chairs the FSB, said that gaps in regulation could create “significant threats to financial stability.” The UK wants to align its system with the U.S. to avoid those risks.
Reports say the UK might initially cap holdings, around £20,000 ($27,000) for individuals and £10 million for businesses, until the system proves safe.
How Other Regions Are Moving
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European Union: Enacted the MiCA regulation in 2024, that creates a uniform rulebook across the entire 27-member region. It offers stablecoin disclosure, exchange licensing, and investor protection across the EU.
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Singapore: Exchanges and wallet operators are made to obtain a license and submit to tight regulation on asset backing and customer protection under the Payment Services Act. It’s considered one of the most well-balanced sets of regulatory provisions for innovation.
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Canada: Requires crypto trading platforms to register with provincial regulators and comply with anti–money-laundering rules. Canada was the first to regulate Bitcoin and Ethereum ETFs, cementing its position as a respected market for regulated crypto investments.
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Switzerland: Regulated tokenized assets under its DLT legislation to facilitate trading in securities on the blockchain and make Zurich and Zug centers for strategic Web3 finance.
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China: Went the opposite direction, barring majority digital assets trading from 2021 while creating its digital yuan, which is now being used in retail pilots and transport networks.
Each nation’s approach reflects the same goal: protect users while allowing innovation to grow responsibly.
Why Crypto Laws Are Needed Now
Strong crypto laws are not just about control, they are about safety and growth.
Clear regulations:
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Protect investors from scams and manipulation
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Build trust among institutions and everyday users
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Attract global companies to regulated markets
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Encourage innovation while keeping financial systems stable
It is anticipated, nations that move now will bring in more fintech businesses and digital asset investment in the future.
The UK is hoping that keeping pace with the US will make it a world leader in tokenized finance and blockchain payments.
