Reeves unveils new crypto rules as she promises to back UK fintech
Chancellor Rachel Reeves pledged to back UK fintech as she unveiled new crypto rules during a landmark address to industry executives on Tuesday.
Speaking at Innovate Finance’s 11th global fintech summit, Reeves pledged to support growth and consumers through new “clear” outlines for digital assets.
The fresh crypto legislation follows on from the Treasury’s launch of a digital gilt instrument in November and aims to scale up the UK’s ability to compete with international peers on the digital assets front.
The Chancellor’s speech comes ahead of the Treasury’s inaugural Financial Services Growth and Competitiveness strategy, where fintech bosses are hoping for a distinct backing.
Reeves said: “I want the UK to be a place where you can take risks, innovate and experiment and find new ways to deliver for your customers.
“I am determined to make sure that the UK remains one of the best places in the world for fintechs to startup, scale up and to list.”
The encouragement of risk-appetite is part of the government’s wider plans to slash the red tape, which it claims is blocking economic growth.
Reeves expected to turn talk into action
Reeves said the government’s strategy document, which was originally scheduled for Spring 2025, will be published on July 15, during her Mansion House Speech.
Capital markets, insurance and asset management were listed as areas of focus by the Chancellor, though she remained tight-lipped on any policy indications.
Reeves hosted leading fintech executives during her series of summits aiming to stimulate growth ideas for the upcoming strategy earlier this year.
Following its meteoric rise, fintech bosses have remained hopeful the Chancellor will use the upcoming strategy to distinctly back the industry through meaningful changes.
Emma Hagan, chief executive of Clearbank UK, told City AM: “I think we really feel excited and energised by the consistency of the messaging and some of the change we are seeing.”
A fleet of fintech firms, including giants Monzo and Starling, are hotly anticipated to float in the near future, though none have made a firm commitment to the London Stock Exchange.
Revolut’s chief executive Nikolay Storonsky said a London IPO was “not rational” last year due to better offerings in the US.
Industry eyes will now turn to July 15, where the Chancellor will be expected to turn words into action to secure the flurry of fintech listings on the horizon.
In her keynote address, Reeves noted discussions with US Treasury Secretary Scott Bessent on opportunities to boost fintech on both sides of the Atlantic.
She said the new crypto legislation will help “support the biggest and responsible growth of digital assets, maintaining the deep historic relationship between the world’s two largest financial centers through this period of significant technological demand.”