UK Treasury drawing up new rules to police cryptocurrency markets

"Cryptocurrencies will be regulated in a similar way to other financial products under legislation coming into force in 2027. The Treasury is drawing up rules that will require crypto companies to meet a set of standards overseen by the Financial Conduct Authority (FCA). Ministers have sought to overhaul the crypto market, which has ballooned in popularity as a way of investing money and making payments."

"The government said the new rules would make the crypto industry more transparent, boost consumer confidence and make it easier to detect suspicious activity, impose sanctions and hold companies accountable. Rachel Reeves, the chancellor, said: 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. 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,"

"Crypto companies, which can include crypto exchanges and digital wallets, must register with the FCA if they provide services that fall within the scope of the UK's money-laundering regulations. The changes mooted by the Treasury will bring companies that provide crypto services into the remit of the FCA and mean the services are regulated in the same way as other financial products, including by being subject to transparency standards."

Legislation due in 2027 will bring cryptocurrencies into a regulatory framework similar to other financial products. The Treasury is preparing rules that require crypto firms to meet standards overseen by the Financial Conduct Authority. Crypto services that fall within the scope of anti-money‑laundering rules must register with the FCA. The measures aim to increase transparency, boost consumer confidence, improve detection of suspicious activity, enable sanctions and corporate accountability, and align crypto services with transparency standards applied to traditional financial products. The reforms intend to support investment, innovation and high‑skilled jobs while excluding bad actors from the UK market.

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