The UK Treasury is developing laws that would allow the crypto sector to be subject to supervision by the Financial Conduct Authority (FCA) from 2027, and the ministry explained in a statement that digital assets will be subject to similar regulation to other financial products under this legislation.
Reuters reported on Monday that the UK was set to formally regulate digital currencies from October 2027, with Treasury Secretary Rachel Reeves saying the move would provide “clear rules” and keep “suspicious parties” out of the market, and that the laws would provide “strong protection for consumers.”
The Chancellor of the Exchequer noted that “subjecting the crypto sector to regulation will represent a decisive step in cementing the UK’s position as a leading financial center in the digital age.”
It is worth noting that the European Union released similar legislation, the Digital Asset Markets Regulation Act (MiCA), a year ago, while the United States continues to develop its laws to regulate the sector.
Britain is seeking to cooperate with the United States to improve regulatory frameworks and innovation in digital currencies through the “Joint Transatlantic Working Group”, and the UK is expected to submit a bill to Parliament later today.
Regulation of the crypto sector under the supervision of the Financial Conduct Authority (FCA)
The new set of rules will subject crypto companies – including trading platforms and digital wallet developers – to supervision by the Financial Conduct Authority (FCA). According to The Guardian, this means regulating crypto industry services like other financial products, including subjecting them to transparency standards.
Lucy Rigby, British MP and City of London representative at the Treasury, said the new laws “will give businesses the clarity and consistency needed for long-term planning”.
Recent data released by the Financial Regulatory Authority also shows that around 12% of adults in the UK own some type of digital currency, a percentage that has been steadily increasing in recent years.
The United Kingdom has officially granted legal ownership of Bitcoin (BTC) and other digital assets under new parliamentary legislation that allows ownership, inheritance and redemption of digital assets in accordance with the law.
The regulator and the central bank intend to finalize their proposals before the end of 2026
Alongside the above, the UK Financial Conduct Authority (FCA) is developing legislation relating to trading activities, market abuse, custody and issuance of digital currencies. Last month, the Bank of England revealed a set of proposals to regulate stablecoins, and a Reuters report said the Central Bank of England and the Financial Conduct Authority had promised to finish preparing their proposals before the end of 2026.
Plans to establish laws regulating the crypto industry come after it suffered recent market turmoil and numerous digital asset fraud operations.
The value of UK digital currency investors’ losses resulting from fraudulent practices has increased by 55% in one year, according to official data released by the UK banking sector.
On the other hand, ministers are also working on plans to ban political donations using digital currencies, amid concerns over the difficulty of verifying their source and ownership.
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