On December 15, the UK government announced plans to fully integrate cryptocurrency into its existing financial regulatory framework by no later than 2027. The UK Treasury will submit relevant legislation to Parliament, aiming to formally place crypto businesses under the oversight of the Financial Conduct Authority (FCA) by October 2027 at the latest. UK Chancellor of the Exchequer Rachel Reeves noted that bringing the crypto industry under regulatory oversight is a key step to strengthening the UK’s position as a global financial center in the digital age — one that will provide clear rules for businesses, protect consumers, and keep bad actors out of the UK market. In April of this year, the UK Treasury released a regulatory draft proposing to bring crypto exchanges, brokers, and intermediaries “into the regulatory perimeter.” The new legislation will align crypto asset regulation more closely with that of traditional financial products. Currently, UK crypto businesses primarily need to register with the FCA, with a focus on anti-money laundering (AML) risk management. UK Economic Secretary Lucy Rigby stated that this legislation marks a significant milestone in the UK’s digital asset policy, aiming to “lead the way in global digital asset adoption” while emphasizing the new rules will balance growth, innovation, and consumer protection. Additionally, the legislation is viewed as a step toward aligning with U.S. crypto regulatory direction. The UK and U.S. established a working group in September 2023 to explore regulatory cooperation in the crypto space. A crypto regulation roadmap released by the FCA last month outlines plans to finalize rules for stablecoins, exchange platforms, and decentralized finance (DeFi) by the end of 2026.
