U.K. Treasury s Comprehensive Crypto Regulatory Framework by 2027

The U.K. Treasury is set to implement a comprehensive regulatory framework for cryptocurrencies by 2027, aligning digital assets with traditional financial regulations. Chancellor of the Exchequer Rachel Reeves emphasized that these new rules aim to provide clarity for the crypto industry and enhance consumer protection.
This announcement follows the Financial Conduct Authority FCA s plans to expedite crypto regulation in 2026, particularly focusing on sterling-denominated stablecoins to position the U.K. as a leader in payment technology. Under the new regime, the FCA will oversee crypto firms, ensuring that major exchanges and digital wallet providers comply with existing anti-money-laundering regulations.
The Reeves government views this legislative move as essential for maintaining the U.K. s status as a world-leading financial center in the digital age. Chancellor 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.
Lucy Rigby, the City of London minister, echoed this sentiment, highlighting that the new rules will offer companies the clarity and consistency necessary for long-term planning.
In addition to these regulatory measures, U.K. ministers are considering a ban on political donations made via cryptocurrency due to concerns over traceability and electoral integrity. This potential ban could impact parties like Nigel Farage s Reform UK.
In summary, the U.K. Treasury s upcoming regulatory framework aims to integrate cryptocurrencies into the traditional financial system while ensuring consumer protection and maintaining the country s competitive edge in the evolving digital landscape.