UK lawmakers are reportedly preparing a bill to bring cryptocurrencies under the country’s existing financial regulations by late 2027.
According to The Guardian and Reuters, citing the UK Treasury, the government will introduce legislation on Monday that will place crypto firms under the oversight of the Financial Conduct Authority (FCA) by October 2027.
“Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial center in the digital age,” said Treasury head Rachel Reeves.
She added, “By providing firms with clear rules, we are giving them the certainty needed to invest, innovate, and create high-skilled jobs here in the UK, while offering strong consumer protections and keeping unscrupulous actors out of the market.”
In April, the Treasury proposed draft legislation to bring crypto exchanges, dealers, and agents “into the regulatory perimeter,” which a ministry spokesperson told Reuters has undergone only minor revisions.
The updates aim to subject cryptocurrencies to the same legal framework and consumer protections as traditional financial products like stocks. Currently, crypto businesses—including exchanges—must register with the Financial Conduct Authority (FCA), which primarily oversees money-laundering risks.
The new legislation would also bring the UK in line with the US, which is considering a bill that would divide crypto oversight among multiple market regulators. In September, the two countries established a task force to explore “short-to-medium term collaboration” on digital assets.
UK aims to “lead the world” in crypto adoption
Economic Secretary Lucy Rigby told the Financial Times, “Bringing forward this legislation is a milestone. Our intention is to lead the world in digital asset adoption.”
She added, “The rules we are putting in place will be proportionate and fair. They are designed to support growth, encourage firms to invest here, and protect consumers. I don’t see any conflict between these goals.”
Rigby noted that while the laws are tailored for the UK, it “makes a good deal of sense to explore mutually beneficial market access opportunities and regulatory alignment, where that aligns with the UK’s interests.”
The upcoming draft legislation follows the FCA’s crypto roadmap released last month, which outlines plans to consult on stablecoins, trading platforms, and decentralized finance, aiming to finalize rules by the end of 2026.
In addition, the Bank of England last month unveiled its own plans to regulate stablecoins. Some lawmakers criticized the approach, saying it could make the UK a “global outlier” by banning most wholesale use of stablecoins outside a sandbox and imposing holding caps they called “impractical and anti-innovation.”
