Crypto Firms To Be Regulated Like Other Assets Under New UK Rules

LONDON, Dec 15 (Bernama-PA Media/dpa) -- Cryptocurrencies such as Bitcoin will be regulated in a similar way to other finance products under new UK laws coming into force in 2027, reported PA Media/dpa.

The Treasury announced legislation which will mean crypto firms have to meet a set of standards and rules overseen by the Financial Conduct Authority (FCA).

It follows efforts to overhaul the market which has grown in popularity in recent years as an alternative investment product and a way of making payments.

But it has not been subject to the same regulation as traditional finance products such as stocks and shares, which means consumers may not get the same level of protection.

The government said the new rules, coming into force in 2027, will make the industry more transparent and make it easier to detect suspicious activity, impose sanctions or hold firms to account over their activity.

Chancellor Rachel Reeves 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."

Crypto firms, which can include crypto exchanges and digital wallets, currently have to register with the FCA if they provide services that fall within the scope of money laundering regulations.

The changes will bring firms that provide crypto services into the remit of the FCA with the intention of supporting legitimate businesses.

City minister Lucy Rigby 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."

--BERNAMA-PA MEDIA/dpa