UK lawmakers are reportedly planning to introduce a bill to parliament to extend the country’s finance sector laws to cryptocurrencies by late 2027.
The government will introduce legislation on Monday that will bring crypto companies under existing finance laws by October 2027 under the oversight of the Financial Conduct Authority (FCA), The Guardian and Reuters reported, citing the UK finance ministry.
“Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial center in the digital age,” said the head of the Treasury, 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,” she said.
In April, the Treasury proposed draft legislation for crypto exchanges, dealers and agents to be “brought into the regulatory perimeter,” which a ministry spokesperson told Reuters had seen only minor changes.
The changes aim to subject crypto to the same laws and consider protections as traditional finance products, such as stocks. Currently, crypto businesses, including exchanges, are required to register with the FCA, which primarily focuses on supervising risks related to money laundering.
The legislation would align the UK with the US, which is looking to pass a bill that carves up crypto among its market regulators. The two countries formed a task force in September to explore “short-to-medium term collaboration” on crypto.
UK plans to “lead the world” in crypto adoption
Economic secretary Lucy Rigby told the Financial Times that “bringing forward this legislation is a milestone. Our intention is to lead the world in digital asset adoption.”
“The rules we are putting in place are going to be proportionate and fair,” she added. “They are going to be good for growth, encourage firms to invest here and protect consumers as well. I don’t see any conflict between those things.”
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Rigby said the laws are designed for the UK, but added it “makes a good deal of sense to explore mutually beneficial market access opportunities and regulatory alignment, where that makes sense for the UK.”
The impending draft legislation comes after the FCA released a roadmap for crypto rules last month, with plans to consult on stablecoins, trading platforms and decentralized finance with the goal of finalizing rules by the end of 2026.
Last month, the Bank of England also revealed plans for regulating stablecoins, which a group of lawmakers claimed would turn the UK into a “global outlier” as the plan bans most wholesale use of stablecoins outside of a sandbox and imposes “impractical and anti-innovation” holding caps.
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