UK aims to finalize crypto regulation by 2027 under FCA oversight

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Artem Shendetskii

15.12.2025

UK aims to finalize crypto regulation by 2027 under FCA oversight — UK Treasury targets 2027 deadline for full crypto regulatory framework

The UK Treasury plans to complete a comprehensive regulatory framework for cryptocurrencies by late 2027, bringing the sector under supervision similar to traditional financial markets.

Сrypto firms would be regulated by the Financial Conduct Authority, ending years of largely fragmented oversight, reports The Guardian.

The move is designed to close a major consumer-protection gap as crypto adoption accelerates across the UK. Regulators have grown increasingly concerned about fraud and losses, particularly after UK Finance reported a 55% year-over-year increase in funds lost to crypto-related scams. The urgency was underscored last month by the UK’s largest Bitcoin seizure on record, when authorities confiscated 61,000 BTC worth more than £5 billion from a fraud case linked to China.

New rules target fraud, accountability and market transparency

Under the proposed framework, crypto-facing companies would be subject to stricter requirements around operational resilience, financial crime prevention and senior management accountability. The FCA said the rules are tailored to the sector’s unique risks, even as it acknowledged that volatility itself cannot be regulated away.

By formalizing oversight, authorities expect to improve detection of suspicious activity, enforce sanctions more effectively and hold firms accountable. UK Chancellor Rachel Reeves said the legislation would provide “clear rules of the road” to give firms certainty while protecting consumers and excluding bad actors from the market.

Government sees regulation as growth strategy, not restriction

Officials have framed the legislation as a way to strengthen the UK’s position as a global digital-asset hub rather than stifle innovation. City Minister Lucy Rigby said the framework is intended to be proportionate and supportive of investment, helping firms create high-skilled jobs while maintaining strong safeguards.

Secondary legislation is expected to be introduced on Monday, with the goal of finalizing the rulebook by mid-2026 ahead of full implementation in 2027. The FCA has already prepared for the transition by streamlining its crypto registration process, cutting approval times to an average of five months and raising approval rates to 45%, compared with less than 15% over the past five years.

Recently we wrote that Bitcoin treasury expansion has cooled significantly in the fourth quarter of 2025, with only nine new companies adding BTC to their balance sheets compared with 53 in the previous quarter.

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