The UK government announces crypto regulation from 2027, with the FCA to oversee firms and provide consumer protections
LONDON: The UK government has announced that laws regulating cryptocurrency firms will come into force from 2027.
The finance ministry stated the “firm and proportionate” rules aim to support the industry while protecting consumers.
Cryptocurrency companies will be regulated by the Financial Conduct Authority in the same way as other financial product providers.
This includes being subject to established transparency standards, according to the ministry’s statement.
The FCA has said rules for a specific crypto framework will be published by 2026.
Finance minister Rachel Reeves said bringing crypto into the regulatory perimeter is a crucial step for the UK’s financial standing.
“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,” she stated.
Reeves added the legislation will hand millions of people strong consumer protections.
She said it will achieve this by locking dodgy actors out of the UK market.
The European Union introduced similar legislation one year ago.
The United States is progressively introducing its own rules regarding cryptocurrency regulation.
Digital tokens like bitcoin have come under increasing regulatory scrutiny after recent controversies.
These include high-profile collapses of cryptocurrency exchanges.
A US court last Thursday sentenced cryptocurrency tycoon Do Kwon to 15 years in prison for fraud.
His company’s failure wiped out USD 40 billion of investors’ money and shook global crypto markets. – AFP
