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.
- 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, Rachel Reeves 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, Lucy Rigby 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.
