Britain will begin regulating cryptoassets under its existing financial services framework from October 2027, the finance ministry said on Dec. 15, 2025. The plan extends long standing UK finance laws to crypto firms, as officials aim to give the sector clearer rules while keeping out fraudulent operators.
Ministers said the legislation will move crypto activities closer to the way traditional financial services operate in the UK. The shift also positions the UK closer to a U.S. style approach rather than the EU’s separate Markets in Cryptoassets framework that took effect in 2024.
The new start date follows earlier UK policy work, including a draft order and policy note published in April 2025 that outlined how crypto activities could enter the regulated perimeter under the Financial Services and Markets Act framework.
FCA and Bank of England Prepare Trading, Custody, and Stablecoin Rules
UK officials said the Financial Conduct Authority and the Bank of England are developing detailed requirements for areas including crypto trading, custody, issuance, and stablecoins. Reuters reported regulators aim to finish key rules by the end of 2026, ahead of the October 2027 start.
The FCA has already mapped a staged timetable for consultations and policy statements, including work on admissions and disclosures and a market abuse style regime for crypto markets. The roadmap sets out a sequence that leads into final rules and a regime go live phase.
In September 2025, the FCA published a consultation that pointed back to the Treasury’s April 2025 draft legislation and described how new regulated activities could bring areas such as stablecoin issuance and safeguarding of cryptoassets under the FCA’s remit once the statutory framework takes effect.
Treasury Adds Political Donation Focus as Market Policing Expands
The Guardian reported the Treasury is drawing up rules that would require crypto companies such as exchanges and wallet providers to follow standards closer to those applied to traditional finance, with the FCA enforcing the regime. It also reported ministers are considering steps on political donations made in crypto because of transparency concerns.
The same report linked the push to consumer protection and crime prevention, pointing to scam risks and high profile cases tied to illicit crypto activity. The government position centers on reducing harm while setting clearer expectations for firms that operate in the UK market.
Reuters also reported the UK plans to work with the United States through a transatlantic taskforce as officials discuss alignment on parts of digital asset oversight. Ministers framed the wider package as an effort to standardize rules while the sector grows, ahead of the 2027 start date.
