The United Kingdom plans to fully bring cryptocurrencies under existing financial services regulations by October 2027, marking a significant shift in its financial system. This initiative aims to enforce stricter oversight and regulations on digital assets to protect consumers and establish the UK as a leading global crypto hub. Under the new law, crypto companies will be regulated similarly to traditional financial institutions and will fall under the jurisdiction of the Financial Conduct Authority (FCA), which currently focuses mainly on anti-money laundering (AML) rules. The UK Treasury chief stated that this move will enhance the country’s competitiveness and safeguard consumer rights.
The legislation will place crypto exchanges, dealers, and other entities on the same regulatory footing as stock and other financial products, incorporating governance, consumer protection, and market transparency rules. Although crypto businesses are already required to register with the FCA, the scope of oversight has been limited until now. Cooperation between the UK and the US on crypto regulations is also increasing, with both countries establishing a joint task force to harmonize regulatory frameworks and promote global market stability.
Additionally, rules for stablecoins and decentralized finance (DeFi) are under consultation, with final regulations expected by the end of 2026. However, some lawmakers have expressed concerns that stringent policies, including recent Bank of England measures, might restrict the UK’s unique position in the global crypto market. If enacted, this legislation will mark the start of comprehensive financial regulation for cryptocurrencies in the UK, providing clear guidelines for businesses and imposing rigorous supervision. The next two years will be crucial as policymakers finalize rules and engage with industry stakeholders to integrate crypto safely and effectively into the financial system.
Source: binance
