The UK Treasury is developing new legislation to bring cryptocurrencies and digital assets under regulatory oversight, aiming to regulate them similarly to other financial products by 2027. Under the proposed rules, cryptocurrency companies will need to comply with standards set by the Financial Conduct Authority (FCA). Chancellor Rachel Reeves described this initiative as a crucial step to maintain the UK’s position as a global financial hub in the digital era. The regulations will provide clear guidance to businesses, enhance consumer protection, and exclude individuals involved in illicit activities from the UK market. Companies offering cryptocurrency services, such as exchanges and digital wallets, will fall under the FCA’s jurisdiction and must adhere to transparency standards and register with the FCA if subject to UK anti-money laundering laws. While cryptocurrencies have become significant to the global financial system, concerns about fraud, money laundering, and consumer rights have grown. The UK’s move seeks to legally integrate the crypto market and safeguard users. Although the framework’s implementation will take time, experts believe it will bring stability to the UK financial market and support growth in the cryptocurrency sector.
Source: binance
