The UK government wants to bring the crypto industry fully under the same kind of rules used in traditional finance, and it hopes to have everything in place by late 2027.
According to reports, the Treasury plans to put the crypto market under full supervision of the Financial Conduct Authority (FCA). This would end years of loose oversight and bring stronger rules to an industry that has grown very fast.
One big goal is consumer protection. Right now, crypto users don’t get the same safeguards as people using banks or stock markets. Officials say the new rules will close that gap and make it easier to spot fraud, track suspicious activity, and punish bad actors.
Crypto use in the UK has surged, but so have scams. UK Finance recently reported that money lost to crypto fraud jumped by 55% in just one year. That risk became very clear last month when UK authorities made their largest Bitcoin seizure ever. They recovered 61,000 Bitcoin worth more than £5 billion after prosecuting a Chinese national who had hidden the stolen funds in the UK.
With clearer rules, the government believes the market will become more transparent and safer. Officials say this could also help the UK become a global hub for digital assets by giving companies confidence to build and invest locally.
UK Chancellor Rachel Reeves said clear rules will give firms certainty to innovate and create skilled jobs, while protecting consumers and keeping dishonest players out of the market.
The FCA has already shared early plans that would hold crypto companies to high standards. These include strong controls against financial crime, clear responsibility for senior managers, and systems that can handle market shocks. While risks like price swings will still exist, officials say the framework supports long-term growth.
City Minister Lucy Rigby called the upcoming legislation a major step, saying the UK aims to lead in digital asset adoption with fair and balanced rules that protect users and encourage investment.
The government expects to finish the rulebook by mid-2026, with full rollout in 2027. The FCA has already started preparing by speeding up its approval process. What once took more than a year now takes about five months, and approval rates for crypto firms have risen sharply.
In short, the UK is moving from loose oversight to clear, firm rules—and officials believe that change could reshape the future of crypto in the country.
