Crypto Assets to Face UK Financial Services Rules by 2027

The UK Treasury plans to subject crypto assets to the same regulatory treatment as traditional financial products starting in 2027. This decision aims to create a unified oversight structure.

The Financial Conduct Authority will be given the responsibility to enforce the new standards. The government anticipates this will lead to improved market transparency, more effective sanctions enforcement, and clearer accountability for firms.

The existing regulatory touchpoint requires crypto firms to register with the FCA and comply with specific anti-money laundering rules. These obligations are centered on know-your-customer due diligence and reporting.

Bill Hughes, a director at Consensys, observed that this “heavy-handed” strategy has already impacted the UK’s global standing, with the US gaining ground due to a more favorable regulatory climate. The regulatory plan follows the recent establishment of digital assets as a legally recognized form of property.

Chancellor Rachel Reeves was quoted saying the framework provides “clear rules of the road,” enabling investment and innovation in the UK while ensuring consumer safety and excluding bad actors.