UK aims to regulate crypto like financial products by 2027

The UK Treasury intends to introduce legislation by 2027 that will regulate crypto assets under the same framework as conventional financial products, overseen by the Financial Conduct Authority (FCA). This move aims to boost transparency, simplify identifying suspicious transactions, enforce sanctions, and increase accountability for firms. This follows the recent passage of the Property (Digital Assets etc.) Act 2025, which legally recognized digital assets. Chancellor Rachel Reeves stated the clear rules will provide certainty for investment and innovation while offering strong consumer protections. Currently, crypto firms must register with the FCA for anti-money laundering compliance. However, some industry figures, like Consensys's Bill Hughes, have suggested the UK's strict approach might be costing it its position as a global crypto hub to the US. Separately, the FCA is also focusing on sterling-pegged stablecoins, planning to enable local firms to experiment with stablecoin payments in 2026.

(Source：The Block)