The U.K. government expects to finalize the national crypto laws by October 2027. The country is looking to bring more transparency to the industrial crypto market as digital assets exploration grows in the region.
Rachel Reeves, U.K.’s Chancellor of the Exchequer believes that it is absolutely crucial to bring crypto under a regulatory framework to establish the U.K. as a global high tech financial sector.
As per reports, the U.K. authorities will likely start regulating crypto assets the same way other financial products are, starting 2027. The Financial Conduct Authority (FCA) will be responsible for ensuring that compliance standards designed to fit the crypto sector are set and enforced to curb instances including the use of crypto for illegal purposes like money laundering and terror financing among other crimes.
Eventually, the U.K. wishes to ensure that its investor community engaging with crypto are just as protected as those investing in stocks and shares.
“We want the UK to be at the top of the list for cryptoassets firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term,” U.K. parliamentarian Lucy Rigby has been quoted by Alliance News as commenting on the development.
For now, crypto businesses operating in the U.K. have to first get a clearance and registration with the FCA to legitimise their operations. Additionally, crypto platforms looking to advertise in the country have to do so with clearly readable warnings informing people that crypto is not a completely regulated sector in the U.K. and that the industry is highly volatile.
CryptoUK, the national independent crypto advisory body there recently said that the U.K. ‘s crypto approach should closely mirror that of the U.S. Andrew Bailey, the governor of the Bank of England (BoE) had also recently said that adopting digital assets like stablecoins could reduce U.K.’s reliance on commercial banks.