The UK government has unveiled plans to bring in “firm and proportionate rules” governing cryptoassets to encourage both safety and growth.
The new rules, which are expected to come into force from 2027, are an attempt from the Treasury to establish a comprehensive regulatory regime for cryptoassets and provide a sense of legal clarity, something the industry has long been calling for.
Under the plan, cryptoassets will be brought into the scope of existing rules for other regulated financial products such as stocks and shares.
As per the changes, firms looking to offer crypto services will need to be regulated by the Financial Conduct Authority (FCA) in the same way they would need approval to provide other financial services.
“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,” said Chancellor Rachel Reeves.
“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.”
The government is currently working in partnership with the US to support innovation in the crypto industry through the Transatlantic Taskforce. This follows leading British blockchain industry body CryptoUK announcing it will formally join US group Digital Chamber to support transatlantic policy advocation.
“We want the UK to be at the top of the list for cryptoasset firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term,” said Economic Secretary to the Treasury Lucy Rigby.
