UK to Initiate Crypto Regulation under FCA Starting 2027, Treasury Announces
The UK Treasury is drafting legislation to bring cryptocurrency regulation under the Financial Conduct Authority (FCA) starting in 2027, treating digital assets similarly to other financial products. According to Reuters, the regulatory framework could begin as early as October 2027, with a draft bill set to be introduced in Parliament later today.
Under this plan, crypto firms such as exchanges and digital wallets will be subject to FCA oversight, including transparency standards. Chancellor Rachel Reeves has emphasized that the new rules will provide strong consumer protections and clarity for long-term planning, aiming to position the UK as a leading digital financial centre.
The UK government is also seeking to collaborate with the United States through a Transatlantic Taskforce to foster crypto regulation and innovation. Concurrently, the Bank of England and the FCA intend to finalize their own regulatory approaches by the end of 2026, with separate proposals addressing stablecoins from the Bank of England.
Financial regulator data indicates that about 12% of UK adults hold some form of cryptocurrency. The forthcoming framework will legally recognize Bitcoin and other crypto assets as property under a new Act of Parliament, enabling ownership, inheritance, and recovery.
In response to concerns regarding the origin and ownership verification of crypto political donations, ministers are preparing plans to ban such contributions.
