How the UK Plans to Regulate Crypto Like Traditional Finance
The UK is establishing a comprehensive crypto regulatory regime by October 2027, aligning digital assets with traditional finance standards.Summary
The United Kingdom is transitioning from a cautious, AML-focused approach to a structured regulatory regime for cryptocurrency, aiming for full integration into the financial services perimeter by October 2027. This shift is underpinned by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025, which expands regulated activities to include trading platforms, dealing, arranging transactions, and custody services.
The Financial Conduct Authority (FCA) is currently developing detailed rules through consultations launched in December 2025, covering operational requirements for platforms, transparency for token issuers (including a new Market Abuse Regime), and prudential standards requiring firms to hold sufficient capital. Final rules are expected in 2026 to ensure consumer protection, market integrity, and responsible innovation.
Separately, the government has initiated a review into foreign financial interference, which may lead to future restrictions on the use of cryptocurrency for UK political donations due to traceability concerns.
(Source：Cointelegraph)