The UK government plans to extend existing financial regulations to crypto companies from 2027, the Treasury announced on Monday.
The Ministry of Finance published a draft law in April setting out proposed rules for crypto exchanges and the issuance of stablecoins.
By extending existing rules on financial services to cryptocurrencies, the UK would emulate the US approach, unlike the European Union (EU), which introduced a regime, the regulation of crypto asset markets, specifically for the sector.
Last month, the Bank of England (BOE) proposed a regulatory regime for the supervision of stablecoins, which is open for consultation until February 2026.
Chancellor Rachel Reeves said the regulation would provide “clear rules of conduct”, while “excluding dubious players” from the market.
The potential for clarity in UK crypto regulation is a “very positive step”, according to George Morris of international law firm Simmons & Simmons, who also warned of the possibility of “over-regulation”.
“In the UK, we need to be careful and recognize that the crypto assets sector continues to grow and will need time to respond to the new rules, rather than imposing an ‘overnight upgrade’, which would deter businesses from engaging with the new rules,” Morris said in an emailed comment. “Proportionality and pace are essential for businesses to adapt, otherwise we risk seeing the learning curve as too steep to justify tackling it.”
UPDATE (December 15, 12:12 UTC): Amends procurement to refer to Treasury announcement and adds comment from George Morris.
