- Chancellor backs cryptoassets firms to invest and grow
in the UK with firm and proportionate regulation.
- Legislation coming into force from 2027 marks major
development in delivering on the government's ambition to make
the UK a global destination for digital assets
- Consumers will be protected by bringing cryptoassets into
scope of similar rules to those for other regulated financial
products like stocks and shares.
Cryptoassets firms will be backed to innovate and grow under
plans to make the UK a global destination for digital assets and
attract more investment.
Firm and proportionate rules will come into force from 2027,
giving firms legal clarity over the sector's regulatory position
and boosting consumer confidence by ensuring consumers are
robustly protected.
The changes mean that firms will need to be regulated by the
Financial Conduct Authority in the same way as other providers of
financial products – including being subject to established
transparency standards.
Through this new regime the UK is helping to shape global
standards for cryptoassets regulation. The regime is designed to
support responsible innovation, ensure open and competitive
markets, and promote the UK as a destination of choice for
digital asset businesses.
Chancellor of the Exchequer, MP, said:
“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.
“By giving firms clear rules of the road, we are providing
the certainty they need to invest, innovate and create high
skilled jobs here in the UK, while giving millions strong
consumer protections, and locking dodgy actors out of the UK
market.”
Economic Secretary to the Treasury, KC MP, said:
“We want the UK to be at the top of the list for cryptoassets
firms looking to grow and these new rules will give firms the
clarity and consistency they need to plan for the long
term.”
By establishing a comprehensive regulatory regime for
cryptoassets, the government is taking another step towards
delivering on its ambition for the UK to be a world-leading hub
for digital finance.
This announcement comes as the government continues its ongoing
work in partnership with the United States to foster innovation
and growth in cryptoassets, through the Transatlantic
Taskforce.
Bringing cryptoassets firms into regulation will enhance
transparency and oversight across the sector – making it easier
to detect suspicious activity, enforce sanctions and hold firms
to account where they fall short.
