LONDON, United Kingdom — The British government announced on Monday that a new legal framework for regulating cryptocurrency companies will officially come into effect by 2027. The “firm and proportionate” rules are designed to foster growth within the digital asset industry while establishing a robust safety net for consumers.
Under the new mandate, cryptocurrency firms will fall under the oversight of the Financial Conduct Authority (FCA). According to a statement from the Finance Ministry, these companies will be “regulated by the FCA in the same way as other providers of financial products — including being subject to established transparency standards.”
The FCA has indicated that the specific technical framework and detailed rulebook for the sector will be made public by 2026.
Chancellor of the Exchequer Rachel Reeves emphasized that the legislation is a cornerstone of the UK’s modern economic strategy.
“Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world leading financial centre in the digital age,” Reeves stated. “By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high skilled jobs here in the UK.”
Reeves further noted that the upcoming laws would offer millions of investors “strong consumer protections” by effectively “locking dodgy actors out of the UK market.”
The UK’s move follows similar legislative steps taken by the European Union a year ago, as well as the progressive rollout of digital asset rules in the United States.
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The push for oversight comes after a series of high-profile industry failures that have eroded public trust. Just last Thursday, a U.S. court sentenced crypto mogul Do Kwon to 15 years in prison for fraud related to his company’s collapse, a failure that erased $40 billion in investor wealth and sent shockwaves through the global market.
By integrating digital tokens, led by Bitcoin, into the formal financial perimeter, the UK aims to mitigate the risks of exchange collapses and fraudulent schemes that have characterized the sector’s unregulated era.
