UK to Fully Regulate Crypto Firms by 2027

The United Kingdom government has announced plans to fully regulate cryptocurrency firms under existing financial laws by October 2027, aiming to integrate digital assets into the mainstream financial system while enhancing consumer protections. The Treasury revealed the initiative on Monday, with the Financial Conduct Authority launching consultations on detailed rules for trading platforms, token listings, and other services.

Under the proposed framework, crypto exchanges, wallet providers, and intermediaries will face oversight similar to that of traditional financial products. This includes requirements for transparency in disclosures, safeguards against market abuse such as insider trading and manipulation, and standards for lending, borrowing, staking, and decentralized finance activities. The Bank of England is separately consulting on rules for stablecoins, focusing on reserves, redemption rights, and systemic risks. Responses to the Financial Conduct Authority's consultations are due by February 12, 2026, allowing time for industry input before final rules take effect.

The move addresses the current light-touch regulation, where crypto firms must only register with the...