UK Treasury Unveils Sweeping New Rules to Police Cryptocurrency Markets
- New powers will allow the FCA to detect and punish market manipulation and insider trading within crypto markets, closing a major gap in current enforcement.
- All crypto exchanges, custodians, and wallet providers operating in the UK will require full FCA authorization, moving beyond the current simple anti-money laundering (AML) registration.
The UK Treasury has announced a set of new rules that will fully regulate the cryptocurrency sector. This is one of the biggest changes to how digital assets are overseen in British history.
The announcement on Monday said that the new rules will require crypto companies to meet the same standards as regular banks and other financial institutions. The rules will be fully in place by early 2027.
The main goal of the law is to change the crypto market from a “wild west” place to a regulated financial system run by the Financial Conduct Authority (FCA).
Chancellor Rachel Reeves said that the goal of the measure is to keep the UK as a global financial center while also protecting consumers.
“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,” Reeves stated. “By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high-skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.”
“Clear Rules of the Road”
The announcement comes after a year of work in the legislature, including the Property (Digital Assets etc) Act 2025, which made digital assets legally recognized as personal property. This new Treasury framework builds upon that foundation to police the trading and promotion of these assets.
City Minister Lucy Rigby talked about how the regulation is good for business and said that making things clear will bring in institutional capital.
“We want the UK to be at the top of the list for crypto assets firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term,” Rigby said.
https://www.fca.org.uk/publication/documents/crypto-roadmap.pdf
