UK plans full crypto regulation by 2027 as treasury moves to end legal grey areas
The move aims to protect users, cut down on bad actors, and give companies clearer rules to build with.
Crypto has grown fast in the U.K., but the rules haven't kept up. Platforms operate under different standards, users are unsure how protected they really are, and regulators are constantly playing catch-up.
This week, though, the U.K. Treasury said it plans to bring crypto under a full legal framework by 2027. The aim is to regulate digital assets much like traditional financial products such as stocks or bonds. Once the rules take effect, the Financial Conduct Authority, or FCA, will be in charge of enforcing them.
The government says the framework is about clarity. Crypto companies would know exactly what's allowed and what isn't. Regulators would find it easier to track suspicious activity, enforce sanctions, and step in when firms break the rules. Chancellor Rachel Reeves said clear laws will give businesses the confidence to invest, create skilled jobs, and grow in the U.K. market.
David Adubiina
The global push for clearer crypto regulation
This move isn't happening in isolation. Around the world, governments are starting to lock in clear crypto rules instead of leaving the industry in legal grey areas.
In the European Union, the Markets in Crypto-Assets regulation, known as MiCA, is already coming into force. It creates one rulebook across EU countries, covering exchanges, stablecoins, and crypto issuers.
Meanwhile, in Singapore, regulators require crypto firms to be licensed and follow strict consumer protection and anti-money laundering rules. Japan has also long regulated crypto exchanges and treats them similarly to financial institutions. Even the United States, despite its slower progress, is moving toward clearer oversight through enforcement actions and proposed laws.
David Adubiina
The U.K. likely wants to stay competitive with these markets, rather than falling behind as firms choose jurisdictions with clearer rules. Also, the country's 2027 plan builds on steps already taken at home. Earlier this month, lawmakers passed the Property (Digital Assets etc.) Act 2025, which officially recognizes digital assets as property under U.K. law. While it doesn't regulate crypto by itself, it creates the legal base needed for wider regulation.
Right now, crypto firms operating in the U.K. must register with the FCA and comply with anti-money laundering laws. That includes checking customer identities and reporting suspicious transactions. Some companies argue these requirements are already tough, but regulators say they're necessary to reduce fraud and abuse.
At the same time, the FCA is trying to support controlled innovation. It's working on plans to allow sterling-backed stablecoins and has said it wants to let firms test stablecoin payments in 2026 through a regulatory sandbox.
By 2027, the U.K. is betting that clear, comprehensive rules are better than uncertainty. For everyday users, that could mean stronger protections and fewer surprises. For companies, it signals a turning point: crypto in the U.K. is no longer experimental or loosely supervised. It is being treated as part of the financial system, with all the responsibility that comes with it.
Techloy
