UK aims to regulate crypto like financial products by 2027
The UK Treasury plans to enact rules by 2027 to regulate crypto assets under the same framework as traditional financial products.The upcoming legislation will impose a set of standards overseen by the Financial Conduct Authority, according to a report from The Guardian. By taking this action, the UK government aims to improve transparency in the crypto sector, making it easier to identify suspicious transactions, enforce sanctions, and hold firms responsible.This comes after UK lawmakers passed the Property (Digital Assets etc.) Act 2025 earlier this month, which established digital assets as a legally recognized form of property.“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," Chancellor Rachel Reeves reportedly said.The UK currently requires that crypto companies register with the FCA in compliance with the agency's anti-money laundering and counter-terrorist financing obligations. This includes know-your-customer due diligence and the obligation to report suspicious transactions.Consensys Senior Counsel and Director of Global Regulatory Matters Bill Hughes previously told The Block that the UK's "heavy-handed" approach to crypto regulation has cost its position as a global crypto hub to the U.S., which has taken a friendlier approach to digital assets. "Deciding that everything in crypto is a financial instrument subject to all the applicable rules really hampers UK competitiveness," Hughes said. Meanwhile, the FCA is also ramping up efforts to promote and regulate sterling-pegged stablecoins. In a recent letter to Prime Minister Keir Starmer, FCA Chief Executive Nikhil Rathi said the agency will prioritize enabling local firms to experiment with stablecoin payments in 2026, based on a regulatory sandbox it opened earlier this year.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.