UK Treasury to Regulate Crypto assets from October 2027

The UK Treasury will begin regulating crypto assets from October 2027, the department announced on Monday, introducing legislation designed to extend existing financial rules to crypto firms and provide regulatory clarity. The move aligns the UK more closely with the U.S. approach to digital assets rather than the European Union’s Markets in Crypto assets (MiCA) framework, which came into effect in 2024.

The draft legislation, published earlier this year, has undergone only minor changes, according to a Treasury spokesperson. Finance minister Rachel Reeves described the regulations as providing “clear rules of the road” for firms, strengthening consumer protections, and excluding “dodgy actors” from the market.

Natalie Lewis, partner at law firm Travers Smith, noted that the final legislation may still require substantial amendments to address technical legal issues identified in the original draft.

The UK’s regulatory regime is taking shape with the Financial Conduct Authority (FCA) planning rules on trading, market abuse, custody, and issuance. Separately, the Bank of England (BoE) has proposed a framework for regulating stablecoins used in daily payments. Both regulators intend to finalize their rules by the end of 2026.

Daniel Slutzkin, head of UK at crypto exchange Gemini, welcomed the timeline, noting that firms can now begin preparing for compliance following years of uncertainty. Regulators continue to caution that crypto investments carry high risks and that investors should be prepared to lose their full investment.