New UK crypto rules will come into effect in 2027
New regulations governing the operation of cryptocurrency firms in the United Kingdom will come into effect from 2027, establishing ‘firm and proportionate’ rules over the sector.
Chancellor Rachel Reeves has backed the introduction of legislation that will require cryptocurrency companies to be regulated by the Financial Conduct Authority (FCA) in the same way as other providers of financial products.
This includes being subject to the established transparency standards enforced on banks and financial firms.
The government aims to help shape global cryptocurrency regulation through this initiative, as well as to provide legal clarity over the sector’s regulatory position and boost consumer confidence and protections.
It hopes that through this updated regulatory regime, it can make the UK a global destination for digital assets, supporting open and competitive markets that protect consumers.
This will also make it easier for the government to detect suspicious activity, enforce sanctions, and hold firms accountable where they do not comply with established practices and oversight requirements.
“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,” Reeves said.
“By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high-skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.”
In addition to introducing this new legislation, the government said it is working with the United States to foster innovation and growth in the cryptocurrency sector.
This comes after the recent passing of the Property Act, which saw cryptoassets recognised as personal property in the UK.
This made England, Wales and Northern Ireland among the first countries in the world to confirm in law that digital assets – such as cryptocurrency or non-fungible tokens – can now be recognised as personal property.
