Britain to Begin Crypto Regulation Under FCA Starting 2027

The UK Treasury is drafting legislation to bring cryptocurrency under the supervision of the Financial Conduct Authority (FCA) by 2027. Digital assets will be regulated similarly to traditional financial products, with stringent transparency standards and consumer protections. Chancellor Rachel Reeves emphasized that the move aims to establish "clear rules of the road" while excluding "dodgy actors" from the market.

The regulatory framework aligns Britain with the European Union's Markets in Crypto-Assets (MiCA) legislation, implemented a year ago. The UK also seeks collaboration with the US through the "Transatlantic Taskforce" to foster innovation alongside regulation. A draft bill is expected to be introduced to Parliament imminently.

Crypto exchanges, wallet providers, and other service operators will fall under FCA oversight, subjecting them to the same scrutiny as conventional financial institutions. This strategic pivot reinforces the UK's ambition to position itself as a global hub for digital finance.