#cryptonews
The UK Treasury is drafting rules to bring crypto under the FCA supervision, starting in 2027. Digital assets will be regulated similar to other financial products under the legislation, the finance ministry said in a statement.
Reuters reported Monday that Britain is moving to formally regulate crypto from October 2027. The move would provide “clear rules of the road” and keep “dodgy actors” out of the market, said Chancellor Rachel Reeves. She added that the rules will hand “strong consumer protections.”
The European Union introduced a similar legislation (MiCA) one year ago, while the US is progressing with its own set of rules for crypto regulation. Britain seeks to collaborate with the US to foster crypto regulation and innovation through the “Transatlantic Taskforce”. The UK will introduce a draft bill into Parliament later today.
“Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age,” the Chancellor noted.
This means the crypto services are regulated in the same way as other financial products, including by being subject to transparency standards, The Guardian reported. Lucy Rigby, the minister for the City of London, said that these new rules “will give firms the clarity and consistency they need to plan for the long term.” Besides, recent data from the financial regulator shows around 12% of UK adults hold some form of cryptocurrency, a figure that has risen steadily in recent years.
The new set of rules would place crypto firms, including exchanges and digital wallets, under the purview of the Financial Conduct Authority (FCA).
