UK Accelerates Crypto Regulation with FCA Oversight and Tax Reporting Mandates

The UK Treasury is implementing sweeping reforms to bring cryptocurrency markets under formal regulatory oversight. Finance Minister Rachel Reeves is spearheading measures that will place crypto exchanges and service providers under Financial Conduct Authority supervision by 2027, marking a significant step toward aligning digital assets with traditional financial products.

Starting January 2026, HM Revenue & Customs will require UK-based crypto firms to implement comprehensive transaction reporting for all domestic customers. This enforcement of the OECD's Crypto-Asset Reporting Framework aims to combat tax evasion while providing clearer visibility into crypto-related income streams.

The regulatory package includes formal recognition of digital assets as property under UK law. These coordinated efforts seek to strengthen consumer protections, enhance market transparency, and reinforce London's position as a global financial hub amid growing institutional crypto adoption.