- The Chancellor is supporting crypto-asset companies to invest and grow in the UK through strong and proportionate regulation.
- The legislation which will come into force from 2027 marks a major step forward in realizing the Government’s ambition to make the UK a global destination for digital assets.
- Consumers will be protected by subjecting cryptoassets to similar rules to other regulated financial products like stocks and shares.
Cryptoasset companies will be supported to innovate and grow as part of plans to make the UK a global destination for digital assets and attract more investment.
Firm and proportionate rules will come into force from 2027, providing businesses with legal clarity on the sector’s regulatory position and boosting consumer confidence by ensuring consumers are robustly protected.
The changes mean that firms will need to be regulated by the Financial Conduct Authority in the same way as other providers of financial products – including being subject to established transparency standards.
Through this new regime, the UK is helping to shape global standards for the regulation of crypto-assets. The regime is designed to support responsible innovation, ensure open and competitive markets and promote the UK as a destination of choice for digital asset businesses.
Chancellor of the Exchequer, Rachel Reeves MP, said:
Bringing crypto into the regulatory scope is a crucial step in securing the UK’s position as a leading global financial center in the digital age.
By giving businesses clear rules of conduct, we are providing them with the certainty they need to invest, innovate and create high-skilled jobs here in the UK, while providing millions of people with strong consumer protection and excluding dubious players from the UK market.
Economic Secretary to the Treasury Lucy Rigby KC MP said:
We want the UK to be at the top of the list of cryptoasset companies looking to expand and these new rules will give businesses the clarity and consistency they need to plan for the long term.
By establishing a comprehensive regulatory regime for cryptoassets, the Government is taking another step towards realizing its ambition to make the UK a global hub for digital finance.
This announcement comes as the Government continues its ongoing work in partnership with the United States to drive innovation and growth in crypto-assets, through the Transatlantic Working Group.
Regulating crypto-asset companies will improve transparency and oversight across the industry, making it easier to detect suspicious activity, apply sanctions, and hold companies accountable if they fail.
