UK Treasury Plans Regulatory Framework for Cryptocurrency by 2027

According to ChainCatcher, the UK Treasury is drafting new regulations to bring cryptocurrencies and digital assets under regulatory oversight. The legislation aims to regulate cryptocurrencies similarly to other financial products, with implementation expected by 2027. The new rules will require cryptocurrency companies to meet standards overseen by the Financial Conduct Authority (FCA). UK Chancellor Rachel Reeves emphasized that incorporating cryptocurrencies into the regulatory framework is a crucial step in ensuring the UK remains a leading global financial center in the digital age. This initiative will provide businesses with clear guidelines while offering stronger consumer protection and excluding illicit actors from the UK market. Under the proposed amendments, companies offering cryptocurrency services will fall under the FCA's jurisdiction, with their services regulated like other financial products, including adherence to transparency standards. These companies, such as cryptocurrency exchanges and digital wallets, must register with the FCA if their services fall within the scope of UK anti-money laundering regulations.