New Legislation Aims to Place Crypto Firms Under Full Regulatory Oversight
The United Kingdom is preparing to take a major regulatory step by bringing cryptocurrencies under its existing financial services laws. According to reports, the government plans to introduce legislation that would place crypto-related businesses within the country’s formal regulatory framework by October 2027, strengthening oversight and consumer protections.
The proposed bill, expected to be presented to Parliament soon, would require crypto exchanges, dealers, and intermediaries to comply with the same financial rules as traditional institutions. Oversight would fall under the Financial Conduct Authority (FCA), expanding its role beyond anti-money laundering supervision to broader market conduct and consumer safeguards.
The Treasury has stated that aligning crypto regulation with established financial laws will provide clear regulatory certainty, encouraging innovation while reducing systemic risks. Officials have emphasized that applying familiar financial standards to digital assets will help exclude fraudulent and high-risk operators from the UK market.
The legislation would place the UK closer to other major economies seeking structured crypto oversight. Authorities have indicated that the framework is designed to be proportionate and growth-focused, balancing innovation with accountability. The move also follows recent consultations on stablecoins, trading platforms, and decentralized finance, with final rules expected by the end of 2026.
By extending financial laws to crypto, the UK aims to strengthen its position as a global financial hub while ensuring users benefit from robust consumer protections in the rapidly evolving digital asset market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.