LONDON
The UK Treasury has announced plans to bring cryptocurrencies and digital assets under formal financial regulation by October 2027, in a move designed to protect investors and ensure the integrity of the growing crypto market.
Officials say the proposed framework will cover a broad range of crypto-related businesses, including exchanges, digital wallets, stablecoin issuers, and other service providers, bringing them in line with the regulations that govern traditional financial markets such as stocks and bonds. The Financial Conduct Authority (FCA) will take the lead role in overseeing compliance and enforcement, aiming to safeguard investors against fraud, market abuse, and other risks.
Finance Minister Rachel Reeves described the move as providing “clear rules of the road” for both consumers and businesses, offering firms regulatory certainty while giving millions of investors stronger protection. The Treasury also emphasized the importance of modernizing the UK financial system to reflect the rapid growth of digital assets and emerging technologies.
The government plans to align its regulations more closely with the United States, rather than the European Union’s Markets in Cryptoassets (MiCA) framework, which came into effect in 2024. A transatlantic task force is being formed to coordinate policy and create consistent international standards for crypto regulation.
In preparation for the 2027 rollout, the FCA and the Bank of England are developing detailed rules covering key areas such as crypto trading practices, custody of digital assets, oversight of stablecoins, and prevention of market abuse. Regulators aim to finalize these standards by late 2026.
City Minister Lucy Rigby emphasized that the framework will be “proportionate and fair,” supporting growth and innovation while maintaining market integrity. She highlighted the government’s ambition for the UK to become a global leader in crypto finance, especially as competition with other jurisdictions such as the U.S. and EU intensifies.
Industry reactions have been largely positive, with many firms welcoming the clarity and predictability that the regulations will provide. Experts, however, have called for careful drafting to avoid technical ambiguities and ensure smooth implementation. Regulators also caution that, despite oversight, cryptocurrencies remain highly volatile and high-risk investments, and investors should remain aware of potential losses.
Reporting from London, this is a major step in the UK’s effort to bring digital assets into the mainstream financial system, balancing innovation with protection for consumers and investors alike.
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