Britain to start regulating cryptoassets from October 2027

The new law will extend existing financial regulation to companies involved in crypto

Britain will start regulating cryptoassets from October 2027, the finance ministry said on Monday, rules it hopes will give the industry certainty while keeping out “dodgy actors”.

The new law – the government will introduce legislation into parliament later on Monday – will extend existing financial regulation to companies involved in crypto.

A draft bill giving effect to regulation has undergone only minor changes since it was published earlier this year, a ministry spokesperson said.

The European Union’s Markets in Cryptoassets rules took effect in 2024.

Finance minister Rachel Reeves said the regulations would provide “clear rules of the road”, strengthen consumer protections and keep “dodgy actors” out of the market.

Natalie Lewis, a partner at Travers Smith, told Reuters she hoped the changes in the final legislation would be “more than minor” as there were “quite a few technical legal problems with the original draft”.

Britain’s regulatory regime for cryptocurrencies is taking shape, with the Financial Conduct Authority planning bespoke rules for trading and market abuse, custody and issuance, and the Bank of England last month unveiling its proposals for regulating stablecoins – a type of cryptocurrency – that are used for everyday payments.

At the same time, regulators continue to warn about the risks, including that investors in cryptocurrencies should be prepared to lose all of their money.

Both the BoE and the FCA have promised to finalise their rules by end-2026.

Daniel Slutzkin, head of UK at crypto exchange Gemini, said firms had “long awaited regulatory clarity” and could now start preparing to meet the new requirements.