UK TO REGULATE CRYPTOCURRENCY – The rules are to take effect in 2027 to increase consumer protection and transparency
The UK Treasury is introducing new legislation that will subject cryptocurrencies to regulation similar to traditional financial products, with the rules expected to take effect in 2027. This overhaul aims to increase consumer protection and transparency within the rapidly growing crypto market.
The new framework will require crypto companies—including exchanges and digital wallet providers—to meet a rigorous set of standards overseen by the Financial Conduct Authority (FCA).
Historically, cryptocurrencies have operated outside the regulatory perimeter governing traditional financial products like stocks and shares, leaving consumers with limited protection.
Chancellor Rachel Reeves strongly endorsed the move, stating, “Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age.”
Currently, crypto firms must register with the FCA if their services fall under the UK’s money-laundering regulations. The Treasury’s changes will bring the full range of crypto services into the FCA’s remit, subjecting them to the same regulatory standards, including transparency requirements, as other financial products.
