Key Takeaways
- The UK Treasury is set to implement crypto regulations by 2027, bringing digital assets under the oversight of the Financial Conduct Authority.
- New rules aim to increase transparency, consumer protection, and accountability in the crypto industry.
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The UK Treasury is drafting new rules to regulate cryptocurrencies under legislation set to come into force in 2027, The Guardian reported Sunday.
The move would place digital asset firms under the supervision of the Financial Conduct Authority (FCA), subjecting them to the same standards as other traditional financial products such as stocks and shares.
Regulators are seeking to address gaps in consumer protection as the market has expanded rapidly, especially with rising losses from crypto-related investment scams. The push is also part of the government’s effort to enhance industry transparency by providing clear compliance guidelines for crypto businesses.
Chancellor Rachel Reeves said incorporating crypto into the regulatory perimeter would provide certainty for firms while offering stronger protections for millions of consumers.
The Treasury stated that the changes would make the sector more transparent and support enforcement against fraud, sanctions breaches, and other financial crimes.
Separately, ministers are moving to ban crypto political donations, warning that their origin and ownership are difficult to verify.