Starting in October 2026, cryptocurrencies will be regulated in the United Kingdom in a manner similar to other financial products, according to reports by The Guardian and other British media outlets on December 16 (local time).
The UK Treasury has introduced a new bill that requires cryptocurrency businesses to comply with various standards and regulations and to be supervised by the Financial Conduct Authority (FCA), the country's financial regulatory authority. According to the bill, cryptocurrency exchanges and digital wallet providers that offer services falling within the scope of the UK's anti-money laundering regulations must register with the FCA and be subject to its oversight. The Treasury explained that the introduction of these new regulations will increase transparency and consumer trust in the cryptocurrency industry, as well as make it easier to detect suspicious activities.
The approach of adding cryptocurrencies to the existing scope of financial regulation appears to be more in line with the United States than with the European Union, which created dedicated cryptocurrency regulations last year. The Bank of England (BOE) and the FCA are also preparing their own regulations related to cryptocurrencies and are expected to complete them by the end of next year. The FCA is developing rules regarding trading and market abuse, custody, and issuance, while the BOE recently released a regulatory proposal for stablecoins.
Chancellor of the Exchequer Rachel Reeves stated, "Including cryptocurrencies within the regulatory framework is a crucial step in securing the United Kingdom's position as a leading global financial hub in the digital age."
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