UK Crypto Framework

Definition ∞ The UK Crypto Framework refers to the set of regulations, guidelines, and proposed legislation developed by the United Kingdom government and its financial authorities to govern digital assets and related activities. This framework aims to provide legal clarity, mitigate risks, and foster innovation within the crypto sector. It addresses areas such as stablecoins, crypto exchanges, and financial promotions.
Context ∞ The UK is actively working to establish a comprehensive and competitive crypto framework, aiming to position itself as a global hub for digital asset innovation while ensuring consumer protection and market integrity. Current discussions involve the specifics of proposed legislation, the scope of regulatory oversight for various crypto activities, and balancing innovation with risk management. Future developments are expected to clarify the legal status of different digital assets and streamline the regulatory environment for crypto businesses operating within the UK.