The UK finance ministry has announced plans to begin regulating crypto assets from October 2027, aiming to provide both certainty and heightened security across the sector.
Officially announced on 15 December 2025, the new regulation is set to expand existing financial regulation to companies operating in the crypto industry.
Strategy and timeline
According to a ministry spokesperson, a draft bill providing effect to regulation has undergone insignificant modifications since initially published earlier in 2025. However, Natalie Lewis, a partner at Travers Smith, said in a statement to Reuters that she hoped the changes in the final legislation would be more than minor, as currently there are technical legal issues with the original draft.
Finance minister Rachel Reeves stated that the regulations would offer ‘clear rules of the road’, scale consumer protection, and safeguard the sector from bad actors. When it comes to the industry, players responded positively to the news, with Daniel Slitzkin, head of UK at Gemini, mentioning that companies have been waiting for regulatory clarity. He added that firms could begin preparing to meet the new requirements.
Rather than the EU, the move positions the UK in line with the US, which has also created rules specifically for the industry, namely the GENIUS Act. Britain now intends to work together with the US to find the best approach to digital assets through a transatlantic task force.
Furthermore, the UK has been directing its efforts towards developing a regulatory framework for cryptocurrencies, with the Financial Conduct Authority (FCA) intending to introduce bespoke rules for trading and market abuse, and custody and issuance, while the Bank of England rolled out its proposals for regulating stablecoins. Both institutions aim for the end-2026 completion date for their rules.
Alpesh Patel, Strategic Partnership Director at Cartex, shared his opinion with us on the Bank of England’s proposed stablecoin framework, saying that this step comes as more of a carefully curated response to how other countries are advancing with their crypto rules. He added that companies working with this framework should stop sitting by and instead engage with the current system, developing a trustworthy image. Regardless, firms should also anticipate the change and start building as if the updates have already been implemented.
However, regulators are still cautious, continuing to advise on the risks linked to the crypto sector, including that investors in cryptocurrencies should also be prepared for significant losses.
