The UK will regulate crypto-like traditional financial products under the supervision of the Financial Conduct Authority (FCA) from 2027.
The government will introduce legislation in parliament today that will see crypto companies, including exchanges, digital wallets and stablecoins, face the same regulatory framework as banks and brokers. They will also be subject to the same transparency standards.
“Bringing cryptocurrencies into regulation is a crucial step in securing the UK’s position as a leading financial center in the digital age,” said Chancellor Rachel Reeves. “By giving businesses clear rules of the road, we are providing the certainty they need to invest, innovate and create highly skilled jobs here in Britain, while providing strong protection for millions of consumers and keeping untrustworthy players out of the UK market.”
🚨 UK goes all-in for crypto 🇬🇧
By 2027, Britain plans to fully integrate crypto into its financial regulatory framework, bringing exchanges under the supervision of the FCA, increasing consumer protection and excluding bad actors.
An important step towards global leadership in digital finance. 🚀 pic.twitter.com/TX69m2cYBJ
— SWFT Blockchain (@SwftCoin) December 15, 2025
The FCA and Bank of England aim to finalize the rules by the end of 2026. This builds on similar legislation, the Markets in Crypto Assets (MiCA) framework, which was introduced by the European Union a year ago.
About 12% of British adults own crypto
The move comes as FCA data shows around 12% of UK adults own some form of crypto.
As a result of increasing adoption, Britain has formally recognized Bitcoin and other crypto assets as legal property under a new law, meaning digital assets can be owned, reclaimed and inherited.
The FCA also plans rules for trading and market abuse, custody and issuance. The Bank of England also unveiled proposals to regulate stablecoins last month.
UK plans to lead the world in crypto adoption
Britain’s push to establish regulations for digital assets is part of a broader effort to become a market leader in crypto adoption.
Economic Affairs Minister Lucy Rigby told According to the Financial Times, the British Treasury’s attempt to regulate crypto like other financial products is “a milestone.”
“Our intention is to lead the world in digital asset adoption,” she said. “The rules we introduce will be proportionate and fair.”
Rigby said the new rules would be “good for growth, encouraging businesses to invest in Britain while providing consumers with the necessary protection. “I don’t see any conflict between those things.”
US pushes for its own crypto regulation
As Britain moves forward with its crypto regulation, lawmakers in the US are drafting their own legislation.
This year, the US has already signed the GENIUS Act into law. Now, lawmakers are working on a draft proposal for the Digital Asset Market (CLARITY) Act, which aims to clarify how digital assets should be classified and regulated.
Lawmakers are trying to reduce jurisdictional confusion between the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
In October, the US and Britain also announced a joint initiative called the ‘Transatlantic Taskforce for Markets of the Future’, which is designed to strengthen cooperation in financial markets, including crypto.
One of the main focuses of that joint initiative is stablecoins, which are cryptos that are tied to an underlying asset, usually fiat currencies. According to data from CoinGecko, the largest stablecoins by market capitalization are currently pegged to the US dollar.
Top stablecoins by market capitalization (Source: Coin gecko)
The market capitalization of these tokens has grown to over $300 billion after the US passed the GENIUS Act, which provided a regulatory framework for stablecoins in the US for the first time.
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