The UK Treasury plans to introduce regulations for crypto assets that are applicable to traditional financial products by 2027.
The upcoming legislation contains a set of standards overseen by the Financial Conduct Authority (FCA). The UK government aims to increase transparency in the crypto sector by making it easier to identify suspicious transactions, apply sanctions, and hold companies accountable.
In early December 2025, UK lawmakers passed the Property (Digital Assets, etc.) Act, which recognised digital assets as a legally recognised form of property.
By providing clear rules for businesses, we give them the confidence to invest, innovate and create highly skilled jobs here in the UK, while providing millions of consumers with strong protections and keeping out bad actors from the UK market, said Chancellor Rachel Reeves.
The UK currently requires crypto companies to register with the FCA in accordance with the agency’s anti-money laundering and counter-terrorist financing obligations. This includes verifying client identities and reporting suspicious transactions.
Bill Hughes, global director of regulatory affairs at Consensys, believes that the UK’s «hardline» approach to cryptocurrency regulation has cost it its position as the global crypto hub in favor of the US, which has adopted a more friendly stance towards digital assets.