UK Treasury Announces Crypto Regulation from 2027

The UK Treasury announced on Monday new legislation to regulate cryptocurrencies such as Bitcoin under the oversight of the Financial Conduct Authority, with rules set to take effect in 2027. The measures will subject digital asset firms, including exchanges and digital wallets, to the same standards as traditional financial products like stocks and shares, aiming to enhance transparency and consumer protections in a rapidly growing market.

The draft bill, introduced into Parliament on the same day, marks a significant expansion of regulatory authority over the crypto sector. Currently, crypto firms must register with the FCA only if their services fall under money laundering rules. Under the new framework, all crypto services will enter the FCA's full remit, including requirements for transparency, market abuse prevention, custody, and issuance. The Bank of England and FCA plan to finalize related rules, such as those for stablecoins, by the end of 2026. Officials stated that these changes will make it easier to detect suspicious activity, enforce sanctions, and hold firms accountable for misconduct.

Chancellor Rachel Reeves described the initiative as a pivotal development....