UK To Introduce Crypto Bill on Monday—Implications for Exchanges and Stablecoin Issuers

ccn.comPublished on 2025-12-15Last updated on 2025-12-15

Abstract

The UK government will introduce new crypto legislation on December 15, aiming to implement regulations by October 2027. The bill will classify operating a crypto exchange and issuing stablecoins as regulated activities, requiring companies to register with the Financial Conduct Authority (FCA). Chancellor Rachel Reeves stated the legislation aims to provide clear rules, encourage investment and innovation, and protect consumers while excluding malicious actors. The FCA has already introduced anti-money laundering rules, with more reporting requirements coming in 2026. The Bank of England will also establish a framework for systemically important GBP-denominated stablecoins by 2026, creating a tiered regulatory model for stablecoins in the UK.

Key Takeaways
  • The U.K. government will introduce new crypto legislation on Monday, Dec. 15.
  • Under the new legislation, operating a crypto exchange and issuing stablecoins will become regulated activities.
  • Companies that carry out regulated activities need to register with the FCA.

The U.K. government is set to introduce crypto legislation in parliament on Monday, Dec. 15, with a view to rolling out new regulations in October 2027.

According to a Treasury spokesperson cited by Reuters , the new bill closely resembles an earlier draft published in April.

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Establishing “Clear Rules of the Road” For Crypto

In widely attributed comments, Chancellor of the Exchequer Rachel Reeves called the new legislation “a crucial step in securing the U.K.’s position as a world-leading financial center 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 U.K., while giving millions strong consumer protections, and locking dodgy actors out of the U.K. market,” she added.

Implications for the U.K. Crypto Sector

The earlier draft statute—technically, an amendment to the 2000 Financial Services and Markets Act (FSMA), rather than a standalone bill—formally brings crypto within the perimeter of British financial regulation.

Anticipating its new role overseeing the crypto sector, the Financial Conduct Authority (FCA) has already implemented new rules covering anti-money laundering, with additional reporting requirements coming into force in 2026. However, without an Act of Parliament, its ability to police the sector remains limited.

Under the new regime, both crypto exchange operators and stablecoin issuers will be required to register with the FCA.

This builds on the Bank of England’s own stablecoin framework, which is expected to be finalized in 2026.

FCA vs. Bank of England Stablecoin Regulation

Read together, the government’s FSMA amendment and the Bank of England’s stablecoin consultation depict a tiered model for stablecoin regulation in the U.K.

Crucially, the draft amendment creates a regulated activity of “safeguarding and administering crypto assets” and then explicitly links stablecoin backing arrangements to that activity.

Regardless of the currency, only FCA-registered entities will be able to issue and redeem stablecoins in the U.K. market.

Meanwhile, the Bank of England’s rules, which cover custody arrangements and reserve assets, will kick in for large, GBP-denominated coins that are determined to be systemically important.

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