Government plans to bring in regulations on crypto assets in 2027

Cryptoasset firms are being encouraged to innovate and expand under new UK government plans aimed at positioning Britain as a global hub for digital assets and attracting greater investment into the sector.

Under the proposals, “firm but proportionate” regulations will come into force from 2027, providing long-awaited legal clarity for cryptoasset businesses and strengthening consumer confidence. 

Companies operating in the sector will be required to be authorised and supervised by the Financial Conduct Authority, bringing them into line with other financial services providers and subjecting them to established transparency and conduct standards.

The government said the new regulatory regime is designed to support responsible innovation while ensuring markets remain open and competitive. 

Aspiring to set global standards for cryptoasset regulation

Officials also argue that the framework will help the UK influence the development of global standards for cryptoasset regulation, reinforcing its role as a leading international financial centre.

Chancellor Rachel Reeves said the reforms were essential to future-proofing the UK’s economy. 

“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,” she said

Clear rules will give firms the confidence to invest and create high-skilled jobs while protecting consumers and excluding “dodgy actors” from the market, she added.

Economic Secretary to the Treasury Lucy Rigby said the rules would provide the “clarity and consistency” firms need to plan for long-term growth.

The announcement comes as the UK continues to work with the US through the Transatlantic Taskforce to promote innovation in cryptoassets. 

Ministers said regulation would also improve oversight, making it easier to detect suspicious activity, enforce sanctions and hold firms to account.