New UK Framework to Govern Crypto as Financial Products by 2027
A major regulatory shift is planned for the UK, aiming to place crypto assets under existing financial services rules by 2027. The Treasury’s proposal seeks to align the digital asset sector with long-standing financial standards.
This legislation will empower the Financial Conduct Authority to supervise crypto activities under a defined standard. The goal is to bring greater clarity and security to the market, making it easier to monitor transactions and apply sanctions.
Current registration rules already mandate that crypto firms follow the FCA’s anti-money laundering and counter-terrorist financing guidelines. These include know-your-customer and reporting procedures.
Bill Hughes of Consensys offered a critical perspective, stating the UK’s rigorous stance has benefited the US market. He contends that broadly classifying crypto as a financial instrument hinders growth. This development follows the enactment of a law that formally recognizes digital assets as property.
According to reports, Chancellor Rachel Reeves said the clear regulations will encourage firms to invest and create jobs in the UK, all while protecting consumers and locking “dodgy actors” out.
