UK Moves to Bring Crypto Under Finance Laws by 2027, What Does it Mean?

UK lawmakers are preparing to take a major step toward reshaping the country’s crypto framework, with plans to introduce a bill that would fold digital assets into existing financial services law. According to a recent report by The Guardian, the government is set to present legislation to parliament on Monday.

The goal is to place crypto firms under full regulatory oversight by October 2027. Under the proposal, crypto companies would fall within the scope of long standing financial rules and come under the authority of the Financial Conduct Authority. 

Treasury head Rachel Reeves said the move is designed to strengthen the UK’s standing as a global financial hub while adapting to the rise of digital assets.

Reeves said the bill would give firms clear expectations, helping them invest and build in the UK, while also extending stronger protections to consumers and keeping dishonest operators out of the market. The legislation follows draft proposals published by the Treasury in April, which a ministry spokesperson said have only seen minor revisions since then.

Crypto Set to Face Traditional Finance Rules

Currently, crypto businesses in the UK are required to register with the FCA, mainly to meet anti money laundering standards. The proposed law would go further by subjecting digital asset firms to similar standards applied to traditional financial products such as stocks and derivatives.

This shift would align the UK more closely with developments in the United States, where lawmakers are also working on legislation to divide crypto oversight among market regulators. Both countries formed a joint task force in September to examine cooperation on crypto matters over the near to medium term.

Economic secretary Lucy Rigby described the bill as a milestone and explained that the government wants the UK to lead global digital asset adoption. She told the Financial Times that the planned rules would be fair and balanced, aiming to support growth while safeguarding users.

UK Regulators Lay Out the Road Ahead

Rigby added that while the framework is specifically for the UK market, coordination with other jurisdictions could make sense where it benefits the country. She stressed that encouraging investment and protecting consumers are goals that can coexist.

The draft legislation arrives shortly after the FCA released a detailed roadmap for crypto regulation. The regulator plans consultations on stablecoins, trading platforms, and decentralized finance, with final rules expected by the end of 2026.

Meanwhile, the Bank of England has outlined its own approach to stablecoin oversight. That plan has drawn criticism from some lawmakers, who argue it could limit wholesale stablecoin use and impose strict holding caps. They warned the approach risks pushing the UK out of step with other major markets.

The proposed bill signals a clear plan from the government to bring crypto into the mainstream of UK financial law.