The UK government, through the Treasury, is introducing legislation to bring the digital assets sector, including crypto exchanges and digital wallets, under the formal regulation of the Financial Conduct Authority (FCA).
The new rules, set to take effect in October 2027, will regulate crypto services similarly to other financial products, imposing standards like transparency and providing strong consumer protections. Chancellor Rachel Reeves stated the move will establish "clear rules of the road," exclude "dodgy actors," and secure the UK's status as a leading financial center.
Key Details:
- Timeline: Formal regulation begins in October 2027.
- Regulator: The FCA will oversee crypto firms.
- Scope: Crypto services will be regulated like traditional financial products.
- Other Rules: The FCA is developing rules for trading, market abuse, custody, and issuance, while the Bank of England (BoE) is proposing stablecoin regulations. Both regulators aim to finalize their specific rules by the end of 2026.
- Legal Status: The UK has already formally recognized Bitcoin and other crypto assets as legal property under a new Act of Parliament, meaning they can be owned, inherited, and recovered.
- Context: The regulatory push follows recent market turbulence, a rise in digital asset scams (money lost to scams by UK consumers jumped 55% in a year), and increasing crypto adoption (around 12% of UK adults hold crypto).
- International Collaboration: The UK seeks to collaborate with the US on regulation and innovation through the "Transatlantic Taskforce."
This initiative is seen by officials, including Minister for the City of London Lucy Rigby, as crucial for providing firms with the clarity and consistency needed for long-term planning. The government is also separately working on plans to ban crypto political donations due to concerns over their origin.
December 2025, Cryptoniteuae