UK Treasury Drafts New Regulations, Cryptocurrency Market to be Regulated by FCA, Expected to Take Effect in 2027

The UK Treasury is drafting new regulations to bring cryptocurrencies and digital assets under regulation. Under the legislation, cryptocurrencies will be regulated in a similar manner to other financial products, expected to take effect in 2027. The new rules will require cryptocurrency companies to meet a series of standards supervised by the Financial Conduct Authority (FCA). UK Chancellor of the Exchequer Rachel Reeves stated that regulating cryptocurrencies is a key step in ensuring the UK remains a leading global financial center in the digital age. This move will provide clear rules for businesses, stronger protection for consumers, and exclude criminals from the UK market. According to the proposed amendments, companies offering cryptocurrency services will fall under the authority of the FCA, with their services regulated like other financial products, including compliance with transparency standards. These companies include cryptocurrency exchanges and digital wallets, which must register with the FCA if their services fall within the scope of UK anti-money laundering regulations.

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