The UK government has set a timeline to fully regulate crypto assets by 2027, treating them under frameworks designed for traditional finance. The Treasury is spearheading the effort to draft and enact the necessary laws.
Oversight will fall to the Financial Conduct Authority, which will administer a new set of operational standards. Officials believe this will increase transparency, aid in enforcing sanctions, and help identify questionable transaction patterns.
Presently, the core requirement for crypto companies is FCA registration for anti-money laundering purposes. This system mandates customer checks and the reporting of suspicious activities to authorities.
Industry feedback highlights a tension. Bill Hughes from Consensys noted the UK’s stringent posture has weakened its position relative to the US, where a friendlier approach exists. He warned that over-regulation could stifle innovation. The regulatory news comes on the heels of a new property law that legally recognizes digital assets.
Chancellor Rachel Reeves emphasized the balance, stating the rules will provide the certainty needed for investment and high-skilled jobs, alongside robust consumer protections.
