Key takeaways
- The UK Treasury is expected to implement crypto regulation by 2027, placing digital assets under the supervision of the Financial Conduct Authority.
- The new rules aim to increase transparency, consumer protection and accountability in the crypto sector.
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The UK Treasury is developing new rules to regulate cryptocurrencies under legislation set to come into force in 2027, the Guardian reported on Sunday.
The move would bring digital asset companies 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 looking to close consumer protection gaps as the market has grown rapidly, especially with losses from crypto-related investment scams increasing. This initiative is also part of the government’s efforts to improve transparency in the sector by providing clear compliance guidelines for crypto companies.
Chancellor Rachel Reeves said bringing crypto into the regulatory scope would provide certainty for businesses while providing stronger protection for millions of consumers.
The Treasury said the changes would make the sector more transparent and support the fight against fraud, sanctions violations and other financial crimes.
Separately, ministers are considering banning crypto political donations, warning that their origin and ownership are difficult to verify.
