The British government says new laws regulating cryptocurrency firms will take effect from 2027, describing the framework as firm but proportionate in supporting innovation while protecting consumers.
Under the proposed regulations, cryptocurrency firms will be supervised by the Financial Conduct Authority, in line with existing standards applied to other financial service providers. The finance ministry said a detailed regulatory framework would be published by 2026.
UK Chancellor Rachel Reeves said the legislation would provide stronger consumer protection by preventing fraudulent actors from operating in the market.
The European Union introduced similar regulations last year, while the United States is gradually implementing its own crypto oversight measures.
Cryptocurrencies have faced increased scrutiny globally following several high-profile collapses in recent years. Last week, a US court sentenced crypto entrepreneur Do Kwon to 15 years in prison over fraud linked to the collapse of his firm, which wiped out an estimated 40 billion dollars in investor funds.
