UK Set to Fully Regulate Crypto with FCA Oversight by 2027

Highlights:

• The United Kingdom plans a clear plan to bring the crypto industry under full regulation.
• From October 2027, crypto companies will follow existing finance laws and face FCA oversight.
• About 12 percent of United Kingdom adults currently own crypto assets, prompting stronger legal control.

The United Kingdom has shared a clear plan to bring the crypto industry under full financial regulation. From October 2027, crypto companies will follow existing finance laws and face direct oversight from the Financial Conduct Authority (FCA). This step comes as more people use digital assets and concerns about user safety continue to grow.

UK Plans New Law to Regulate Crypto Like Traditional Financial Firms

The Treasury said new legislation will be introduced on Monday. Reports from The Guardian and Reuters, quoting the United Kingdom finance ministry, state that the law will place crypto firms in the same legal category as other financial businesses. Regulatory checks will extend beyond the current limited registration process.

The UK Treasury is drafting rules to bring cryptocurrencies and related services under FCA supervision from 2027, regulating exchanges and digital wallets like other financial products with transparency and compliance requirements. The government is also planning to ban political…

— Wu Blockchain (@WuBlockchain) December 15, 2025

Officials explained that the aim is straightforward. Crypto products will be handled in a similar way to shares and other regulated assets. The government believes this approach will improve user protection while still supporting the United Kingdom’s position as a global financial hub.

Right now, many crypto businesses only register with the Financial Conduct Authority for money laundering checks. Wider conduct rules usually do not apply. Regulators now see this system as outdated, as public participation has increased. About 12% of United Kingdom adults currently own crypto assets. Officials say this level of ownership needs stronger legal control. Officials now view regulation as necessary to match the level of public risk exposure.

Rachel Reeves, who leads the Treasury, described the plan as a key part of the country’s financial standing. She said bringing crypto within the regulatory framework would help secure the United Kingdom’s role as a leading financial center in the digital era. She also pointed to both economic and safety aims.

Reeves suggested that clear rules would give firms the certainty needed to invest, innovate, and create high-skilled jobs in the United Kingdom. She emphasized that the government will strengthen consumer protections and remove unreliable actors from the market.

Crypto Gets Legal Recognition and Stronger Rules

Along with tighter oversight, the United Kingdom has also moved to give crypto assets clear legal recognition. The new laws allow people to legally own digital assets, including Bitcoin, pass them through inheritance, and recover them through the courts. This change strengthens the legal position of crypto holders and adds formal recognition to the asset class.

Update – this Bill is now on the way to the King's desk for Royal Consent and will shortly become law. See thread for some extra details👇

A hugely significant step for English law and for UK citizens who use Bitcoin.@bitcoinpolicyuk have been supporting this since the Law… https://t.co/ZbBdK59yZi

— Freddie New (@freddienew) December 2, 2025

Meanwhile, regulators are acting well before the 2027 deadline. The Financial Conduct Authority and the Bank of England are already drafting detailed rules for crypto trading, asset custody, token issuance, and market abuse controls. The Bank of England has also put forward plans for regulating stablecoins. Officials expect to complete most of these regulatory measures by the end of 2026. Officials designed this schedule to give companies enough time to adjust their systems and operations before full enforcement.