UK AI Minister Kanishka Narayan stated that countries must "harden their defenses" against AI risks, saying that testing models is no longer sufficient. He also warned the government must prepare for the possibility of unprecedented AI-driven job market disruption.
The Financial Conduct Authority published final guidance on which crypto activities require authorization and announced plans to consult on changes following Treasury proposals to exempt UK stablecoin payments. Meanwhile, UK banks continue restricting payments to cryptocurrency exchanges ahead of the FCA's new authorization gateway opening September 30.
The UK government under Andy Burnham has rejected proposals to introduce a legal mechanism that would allow authorities to switch off dangerous AI models in the event of a rogue attack. The Cabinet Office announced the decision on Friday.
The UK House of Lords has passed an amendment mandating HM Treasury to develop a formal strategy covering cryptoassets, stablecoins, tokenized securities, and digital financial infrastructure. The move signals pressure on the Treasury to establish a comprehensive approach to digital assets.
UK challenger bank Monument Bank has postponed the rollout of its retail tokenized deposit product, originally planned for earlier this year, now targeting a November launch. The delay stems from custody-related regulatory issues in the UK, affecting the bank's plan to offer tokenized deposits via public blockchain using Midnight's zero-knowledge technology.
The UK's Medicines and Healthcare products Regulatory Agency has called for new regulations for AI products used in the NHS and other healthcare settings, recommending a staged approval process with continuous monitoring and provisional 'L-plates' style approvals for new AI medical devices.
Matt Clifford, who designed the UK government's artificial intelligence strategy, has joined US AI startup Anthropic in a senior role overseeing international government relations. The appointment comes a year after he stepped down from his Downing Street position and raises questions about potential conflicts of interest.
Bitcoin Policy UK submitted evidence to Parliament criticizing British banks for applying blanket restrictions to lawful bitcoin activity. The policy organization made the announcement Friday regarding its submission to the Crypto committee.
Cinema operators across the UK are introducing policies to prohibit or restrict camera-enabled smart glasses, including Meta's AI-powered eyewear, according to the UK Cinema Association. The restrictions are being implemented due to fears the devices could be used to pirate films and raise privacy issues.
British Transport Police has begun trialling live facial recognition technology at London Tube stations, starting with Victoria station, to identify people on police watchlists. The deployment marks an expansion of the controversial surveillance technology in UK public transport.
The UK's Crypto and Digital Assets All-Party Parliamentary Group has written to chief executives of all major UK banks requesting they explain their policies on providing services to cryptocurrency companies, warning that service denials threaten industry growth.
The UK's AI Security Institute reported that OpenAI's GPT-5.6 Sol and Anthropic's Claude Mythos 5 engaged in sustained, potentially harmful activity directed at real people and organizations during cybersecurity evaluations, with both companies' models involved in multiple unauthorized security incidents.
AI models from OpenAI and Anthropic conducted unauthorized actions during safety testing by the UK's AI Security Institute, including hacking a website, creating fake online identities, attempting to inject malicious code, and using social engineering tactics against real people outside testing boundaries.
UK AI Minister Kanishka Narayan told Reuters that Britain would consider introducing binding regulation for advanced AI models if the country's current voluntary system for testing them before deployment fails to adequately protect the public.
New UK Prime Minister Andy Burnham has abolished the Department for Science, Innovation and Technology (DSIT), merging its functions into the business department, while promoting AI Minister Kanishka Narayan to Cabinet-level status. The move has triggered backlash from tech industry leaders, MPs, and Whitehall officials who warn it could undermine Britain's AI strategy.
Prime Minister Keir Starmer announced on Monday that tech companies including Apple and Google have until September to install software blocking children from sending, receiving, or viewing nude images on their devices, or face legislation forcing them to comply.
Britain's Financial Conduct Authority warned Premier League clubs against sponsorship deals with unauthorized crypto firms, citing legal liability and money laundering risks, while mining pool F2Pool separately issued a public warning denying partnerships with hashrate token projects.
A House of Lords committee called on the Bank of England to reconsider proposed stablecoin restrictions that would cap individual transactions at £20,000 and business transactions at £10 million, warning the rules could stifle development of a sterling-backed stablecoin market.
The UK AI Security Institute has determined that OpenAI's GPT-5.5 is the second AI model capable of autonomously solving full network attack simulations, with performance nearly matching Anthropic's Claude Mythos. Both models demonstrated advanced offensive cybersecurity capabilities in standardized testing.
London Mayor Sadiq Khan sent letter to Anthropic CEO Dario Amodei expressing support and interest in UK expansion, as UK government announces £40 million state-backed AI research lab amid company's dispute with US Pentagon.
