Bitcoin, other cryptoassets' regulation in UK to start from October 2027

Following in the footsteps of other nations, the UK is gearing up to regulate Bitcoin and other cryptoassets from October 2027, as announced by the finance ministry on Monday.

The impending regulation of cryptocurrencies in the UK is being constituted under a new legislation that aims to provide certainty for the industry while excluding "dodgy actors."

The British government is planning to take the legislation into the parliament later today, extending existing financial regulations to companies involved in crypto. This will align the UK more closely with the U.S. rather than the European Union, which has implemented tailored rules for the sector.

A draft bill for the regulation has reportedly undergone minor changes since its initial publication earlier this year.

The UK government is also expected to collaborate with the U.S. to develop a suitable approach to digital assets through a "transatlantic taskforce."

UK Finance Minister Rachel Reeves stated that the new crypto rules would offer “clear rules of the road,” enhance consumer protections, and prevent dishonest participants from entering the market.

Daniel Slutzkin, the head of the UK at crypto exchange Gemini, noted that firms have “long awaited regulatory clarity” and can now prepare to meet the new requirements.

The Financial Conduct Authority (FCA) is working on bespoke rules addressing trading, market abuse, custody, and issuance, while the Bank of England recently unveiled proposals for regulating stablecoins used for everyday transactions.

When will cryptoassets' regulation start in UK?

Both the FCA and the Bank of England are determined to finalise the laws by the end of 2026, with cryptoassets' regulations potentially taking off in 2027.