The UK Treasury has announced it will implement “firm and proportionate” regulatory rules for crypto firms starting in 2027.
The new rules mean that cryptoassets firms will need to be regulated by the Financial Conduct Authority (FCA) in the same way as other providers of financial products such as stocks and shares – including being subject to established transparency standards.
By bringing cryptoassets firms into regulation, the hope is that it will help enhance transparency and oversight across the sector. This will make it easier to detect suspicious activity, enforce sanctions and hold firms to account.
Cryptoassets or cryptocurrencies are a type of digital money such as Bitcoin, Ripple, Litecoin and Ethereum. They are an alternative way of storing value electronically, outside of centralised systems (such as banks) and away from regulators. Other cryptoassets include stablecoins, utility tokens or tokenised assets.
Globally, interest in cryptoassets has surged since US President Donald Trump came to power with his pledge to make the US “the crypto capital of the planet”. Bitcoin stocks reached an all-time high on 6 November 2024 and have grown even further since. It reached a record high of around $126,000 in early October 2025, but has fallen sharply in subsequent weeks.
While the US is taking what is perceived to be a more crypto-friendly approach to cryptocurrency, the UK Treasury says its new “firm and proportionate rules” coming into force from 2027 will provide legal clarity over the sector’s regulatory position.
The aim, it says, is to help support responsible innovation, ensure open and competitive markets, promote the UK as a destination of choice for digital asset businesses and ensure consumers are robustly protected.
Chancellor Rachel Reeves said: “Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age.
“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.”
Lucy Rigby, economic secretary to the Treasury, said: “We want the UK to be at the top of the list for cryptoassets firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term.”
The Treasury says it will continue to collaborate with the US on financial regulation, including digital assets, through the Transatlantic Taskforce, which was established in September 2025.
In October 2025, new analysis revealed that hackers from North Korea managed to steal a record $2bn in crypto in 2025.
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