UK Treasury drafting legislation to regulate cryptocurrency markets
15 December 2025 UK
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Cryptocurrencies will be regulated in line with other financial products under new UK legislation that will come into effect in 2027.
The Treasury is drafting laws that will oblige crypto firms to adhere to a set of standards governed by the Financial Conduct Authority (FCA).
The government says the changes will protect consumers through forcing crypto assets to be subject to similar rules that control conventional financial products such as stocks and shares.
The new regulation intends to improve customer confidence and transparency across the sector by increasing accountability of firms, easing the detecting suspicious activity, and improving the ability to apply sanctions.
Chancellor of the Exchequer, Rachel Reeves MP, comments: “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, minister for the City of London, remarks: “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.”
Nick Jones, Zumo CEO and founder, adds: “By legislating to extend existing financial regulation to companies involved in crypto, rather than producing complicated rules tailored to the industry as seen with the EU’s MiCA, policymakers are sending a clear signal that they believe digital assets can successfully coexist with fiat money in a reimagined future financial system.”
“We now have the clarity and certainty we’ve been seeking to lay firm foundations for further investment and innovation that will keep the UK at the forefront of financial services.
"The new laws will bring greater transparency to the sector, keeping bad actors at bay while ensuring consumers benefit from the robust protection they rightly expect from any financial product or service.”
He also noted: “With today’s announcement, momentum is starting to snowball as we head towards 2026 — which will be the year the UK becomes serious about establishing itself as a genuine crypto hub.
"Many in the industry have been loudly lobbying for the appropriate regulatory framework that will facilitate new avenues of economic growth, so this is very welcome news.”
The Treasury is drafting laws that will oblige crypto firms to adhere to a set of standards governed by the Financial Conduct Authority (FCA).
The government says the changes will protect consumers through forcing crypto assets to be subject to similar rules that control conventional financial products such as stocks and shares.
The new regulation intends to improve customer confidence and transparency across the sector by increasing accountability of firms, easing the detecting suspicious activity, and improving the ability to apply sanctions.
Chancellor of the Exchequer, Rachel Reeves MP, comments: “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, minister for the City of London, remarks: “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.”
Nick Jones, Zumo CEO and founder, adds: “By legislating to extend existing financial regulation to companies involved in crypto, rather than producing complicated rules tailored to the industry as seen with the EU’s MiCA, policymakers are sending a clear signal that they believe digital assets can successfully coexist with fiat money in a reimagined future financial system.”
“We now have the clarity and certainty we’ve been seeking to lay firm foundations for further investment and innovation that will keep the UK at the forefront of financial services.
"The new laws will bring greater transparency to the sector, keeping bad actors at bay while ensuring consumers benefit from the robust protection they rightly expect from any financial product or service.”
He also noted: “With today’s announcement, momentum is starting to snowball as we head towards 2026 — which will be the year the UK becomes serious about establishing itself as a genuine crypto hub.
"Many in the industry have been loudly lobbying for the appropriate regulatory framework that will facilitate new avenues of economic growth, so this is very welcome news.”
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