LONDON, Dec 15 (Reuters) – Britain will begin regulating cryptoassets from October 2027, the Finance Ministry said on Monday. He hopes these rules will give some certainty to the sector while excluding “dubious actors”.
The new law – the government will introduce a bill to Parliament later on Monday – will extend existing financial regulations to companies involved in crypto, bringing Britain in line with the United States rather than the European Union, which has developed rules tailored to the sector.
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The United States is pursuing what is seen by the industry as a more cryptocurrency-friendly approach than Britain, while European Union rules on cryptoasset markets came into force in 2024.
Britain said it would work with the United States on the best approach to digital assets through a “transatlantic working group.”
Finance Minister Rachel Reeves said the rules would provide “clear rules of conduct”, strengthen consumer protection and keep “dubious actors” out of the market.
Natalie Lewis, a partner at Travers Smith, told Reuters she hoped the changes in the final legislation would be “more than minor” because there were “a number of technical legal issues with the original draft.”
The UK’s regulatory regime for cryptocurrencies is taking shape, with the Financial Conduct Authority planning bespoke rules on trading and market abuse, custody and issuance, and the Bank of England last month unveiled its proposals to regulate stablecoins – a type of cryptocurrency – which are used for everyday payments.
At the same time, regulators continue to warn of risks, including that investors in cryptocurrencies should be prepared to lose all their money.
The BoE and FCA have promised to finalize their rules by the end of 2026.
Daniel Slutzkin, head of UK cryptocurrency exchange Gemini, said businesses have been waiting for “regulatory clarity for a long time” and can now start preparing to meet the new requirements.
Reporting by Phoebe Seers; Editing by Tommy Reggiori Wilkes and Alex Richardson
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