UK to Bring Crypto Under FCA Oversight From 2027, Treasury Says
Britain is preparing to formally regulate the crypto industry, with new rules set to bring digital assets under the supervision of the Financial Conduct Authority (FCA) starting in October 2027, according to the UK Treasury.
Under the plans, crypto will be regulated much like other financial products, giving the industry what officials describe as “clear rules of the road” while strengthening protections for consumers.
Chancellor Rachel Reeves said the move is aimed at cleaning up the market and keeping bad actors out.
“Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age,” Reeves said, adding that the framework will deliver “strong consumer protections.”
Crypto Firms to Face Full FCA Supervision
The new regime would place crypto exchanges, wallet providers, and other digital-asset firms directly under the FCA’s authority. That means companies will need to meet the same standards as traditional financial services — including transparency, governance, and consumer protection requirements.
Lucy Rigby, the minister for the City of London, said the rules will give firms “the clarity and consistency they need to plan for the long term,” a long-standing request from both startups and large financial institutions.
The Treasury noted that crypto ownership in the UK continues to rise, with around 12% of adults now holding some form of digital asset — a figure that has grown steadily in recent years.
Legal Recognition and Global Context
The regulatory push builds on earlier legislation that formally recognized Bitcoin and other crypto assets as legal property in the UK. Under that law, digital assets can be owned, inherited, and recovered through the legal system.
Britain’s move follows similar developments abroad. The European Union rolled out its Markets in Crypto-Assets (MiCA) framework last year, while the United States is advancing its own crypto regulatory proposals.
UK officials also said they are seeking closer cooperation with the US to support responsible crypto innovation while maintaining regulatory safeguards.
More Rules Coming by 2026
Alongside the Treasury’s plans, both the FCA and the Bank of England are developing their own detailed rulebooks.
The FCA is working on regulations covering crypto trading, market abuse, custody, and issuance. Meanwhile, the Bank of England last month published proposals for regulating stablecoins.
Both regulators have said they expect to finalize their rules by the end of 2026, paving the way for the full framework to take effect in 2027.
Crackdown Comes After Scams and Market Turmoil
The regulatory push comes amid heightened concern over crypto-related scams and market volatility. According to recent figures, the amount of money lost to crypto investment scams by UK consumers has jumped 55% year-on-year.
Separately, ministers are also considering plans to ban crypto-based political donations, citing concerns about transparency, ownership, and the difficulty of verifying where funds originate.
For the UK government, the message is clear: crypto is here to stay — but it will now be held to the same standards as the rest of the financial system.
