The UK Treasury is drafting new regulations, and the cryptocurrency market will be regulated by the FCA, expected to take effect in 2027.

Odaily Planet Daily reported that the UK Treasury is drafting new regulations aimed at bringing cryptocurrencies and digital assets into the regulatory framework. Under the legislation, cryptocurrencies will be regulated similarly to other financial products, with an expected implementation date in 2027. The new rules will require crypto companies to meet a series of standards overseen by the Financial Conduct Authority (FCA). UK Chancellor Rachel Reeves stated that bringing cryptocurrencies into the regulatory scope is a key step to ensure the UK remains a leading global financial center in the digital age. This move will provide clear rules for businesses, offer stronger protections for consumers, and exclude illicit actors from the UK market. According to the proposed amendments, companies offering cryptocurrency services will fall under the jurisdiction of the FCA, and their services will be regulated like other financial products, including adherence to transparency standards. These companies include cryptocurrency exchanges and digital wallets, and if their services fall within the scope of UK anti-money laundering regulations, they must register with the FCA.