The UK will begin formally regulating cryptoassets from October 2027, the finance ministry said on Monday, as the government prepares to introduce new legislation to parliament.
Under the plans, crypto firms will be regulated in much the same way as traditional financial companies, rather than being placed under a separate, crypto-only regime. Ministers say the aim is to provide clearer rules, improve consumer protection and prevent bad actors from operating in the market.
The UK also plans to coordinate closely with the United States on crypto policy through a joint taskforce. Finance minister Rachel Reeves said the new framework would offer clearer guidance for businesses while strengthening protections for consumers. A draft version of the legislation was published earlier this year and, so far, has seen only limited changes.
The Financial Conduct Authority (FCA) is developing detailed rules covering areas such as trading, custody and market abuse. Meanwhile, the Bank of England is working on a separate set of rules for stablecoins, which are increasingly used for everyday payments. Both regulators aim to finalise their proposals by the end of 2026.
However, some legal experts have raised concerns about the draft law, arguing that it contains technical flaws and requires more substantial revisions. In particular, they say the legislation does not clearly fit alongside existing financial laws, which could leave firms having to comply with multiple overlapping frameworks, adding cost and complexity.
Industry groups have also warned that the UK’s approach differs from that of jurisdictions such as Australia and Singapore, where crypto activities are largely regulated within existing legal structures rather than through a new category.
They say this could make it harder for UK-based firms to compete internationally. Natalie Lewis, a partner at law firm Travers Smith, quoted by Reuters said that she hoped the final legislation would include “more than minor” changes, citing “quite a few technical legal problems” in the original draft.
Global interest in crypto has continued to grow, particularly after Donald Trump returned to power and publicly backed the industry. Crypto firms say they have long been waiting for regulatory clarity and that the UK’s plans now give them something concrete to prepare for.
