UK Treasury to regulate cryptocurrency under new legislation
What you need to know about new UK rules on cryptocurrency
- The UK government is set to introduce new legislation by 2027 to regulate cryptocurrencies, including Bitcoin, bringing them under a framework similar to traditional financial products.
- The Treasury's plans will mandate crypto firms to adhere to specific standards and rules, which will be rigorously overseen by the Financial Conduct Authority (FCA).
- This regulatory reform aims to increase transparency in the burgeoning crypto market, making it easier to detect suspicious activity, impose sanctions, and hold firms accountable.
- Chancellor Rachel Reeves stated that this move is crucial for securing the UK's position as a world-leading financial centre, providing certainty for firms, strong consumer protections, and deterring illicit actors.
- The new rules are intended to support legitimate crypto businesses by bringing their services within the FCA's remit, aiming to make the UK a top choice for cryptoasset firms looking to grow.