UK Plans to Start Regulating Cryptocurrency in 2027
TL;DR
The UK government plans to introduce cryptocurrency regulation starting October 2027, extending existing financial rules to crypto companies. The legislation will largely follow April's draft framework, similar to the US approach rather than the EU's specific crypto regime.
Key Takeaways
- •UK cryptocurrency regulation will begin in October 2027, applying existing financial services rules to crypto companies
- •The legislation will closely follow draft proposals published in April 2024, covering crypto exchanges and stablecoin issuance
- •The UK is adopting a US-style regulatory approach rather than the EU's specialized MiCA framework
- •The Bank of England has proposed stablecoin oversight regulations open for consultation until February 2026
- •Chancellor Rachel Reeves stated the regulations aim to provide clear rules while excluding 'dodgy actors' from the market
What to know:
- The U.K. government plans to extend existing financial regulation to cover crypto companies from 2027.
- The Treasury published draft legislation in April, which laid out the framework for crypto exchanges and stablecoin issuance.
- In extending existing financial services rules to the crypto industry, the U.K. will be emulating the approach of the U.S.
- The U.K. government plans to extend existing financial regulation to cover crypto companies from 2027.
- The Treasury published draft legislation in April, which laid out the framework for crypto exchanges and stablecoin issuance.
- In extending existing financial services rules to the crypto industry, the U.K. will be emulating the approach of the U.S.
The U.K. government plans to extend existing financial regulation to cover crypto companies from 2027, the Treasury said Monday.
The finance ministry published draft legislation in April, which laid out the proposed rules for crypto exchanges and stablecoin issuance.
In extending existing financial services rules to crypto, the U.K. would be emulating the approach of the U.S., in contrast to the European Union (EU), which introduced a regime, the Markets in Crypto Assets regulations, specifically for the industry.
Last month, the Bank of England (BOE) proposed a regulatory regime for oversight of stablecoins, which is open to consultation through February 2026.
Chancellor Rachel Reeves said the regulation would offer "clear rules of the road," while "locking dodgy actors" out of the market.
The potential for clarity of crypto regulation in the U.K. is a "very positive step," according to George Morris of international law firm Simmons & Simmons, who also warned of the possibility of "over-regulating."
"We must be careful in the U.K. to recognise that the crypto assets industry is still growing and will need time to respond to the new rules, rather than forcing an ‘overnight upgrade’, which will deter firms from engaging with the new rules," Morris said in an emailed comment. "Proportionality and pace are key so that firms can adapt, or we risk companies seeing the learning curve as too steep to justify tackling it."
UPDATE (Dec. 15, 12:12 UTC): Changes sourcing to reference Treasury announcement, and adds comment from George Morris.
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