From 2027, the Treasury has announced it will implement “firm and proportionate” rules to give firms legal clarity over the crypto sector’s regulatory position and “boost consumer confidence by ensuring consumers are robustly protected”.
The Treasury said: “Cryptoassets firms will be backed to innovate and grow under plans to make the UK a global destination for digital assets and attract more investment.”
This means that firms will need to be regulated by the Financial Conduct Authority in the same way as other providers of financial products, “including being subject to established transparency standards”.
Through this new regime the UK is helping to shape global standards for cryptoassets regulation.
The Treasury added: “The regime is designed to support responsible innovation, ensure open and competitive markets, and promote the UK as a destination of choice for digital asset businesses.”
The government believes this is another step towards delivering on its ambition for the UK to be a world-leading hub for digital finance.
The UK is currently working in partnership with the US “to foster innovation and growth in cryptoassets”, through the Transatlantic Taskforce.
Chancellor of the exchequer, Rachel Reeves MP, said: “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.
“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, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.”
Economic Secretary to the Treasury, Lucy Rigby KC MP, added: “We want the UK to be at the top of the list for cryptoassets firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term.”