UK to Regulate Cryptocurrencies Under FCA Supervision by 2027
The UK government is advancing plans to bring cryptocurrencies under the regulatory oversight of the Financial Conduct Authority (FCA) by 2027. The proposed legislation aims to treat digital assets like traditional financial products, establishing clear rules to weed out bad actors and bolster market confidence.
Chancellor Rachel Reeves emphasized the dual focus of the framework: robust consumer protections and a safer environment for crypto users. This move aligns with global trends of increasing regulatory scrutiny on digital assets, though the UK's 2027 timeline gives market participants several years to adapt.
The decision follows growing pressure to address crypto-related risks without stifling innovation. By bringing the industry under the FCA's purview, the UK seeks to balance oversight with the sector's disruptive potential—a delicate equilibrium other jurisdictions continue grappling with.
