The UK Treasury has drafted new regulations that would subject the cryptocurrency market to FCA regulation, with the new rules expected to take effect in 2027.

Odaily reports that the UK Treasury is drafting new regulations aimed at bringing cryptocurrencies and digital assets under its purview. Under this legislation, cryptocurrencies will be regulated in a manner similar to other financial products, and the new rules are expected to take effect in 2027. The new regulations will require cryptocurrency companies to meet a range of standards overseen by the Financial Conduct Authority (FCA).

UK Chancellor of the Exchequer Rachel Reeves stated that bringing cryptocurrencies under regulation is a crucial step in ensuring the UK remains a leading global financial center in the digital age. This move will provide clear rules for businesses, stronger protection for consumers, and keep criminals out of the UK market.

Under the proposed amendments, companies offering cryptocurrency services would fall under the FCA's jurisdiction and their services would be regulated like other financial products, including compliance with transparency standards. These companies would include cryptocurrency exchanges and digital wallets, and would be required to register with the FCA if their services fall within the scope of UK anti-money laundering regulations.