According to a report by Reuters, the UK Treasury announced on Monday that it will begin comprehensive regulation of crypto assets starting in October 2027, hoping to provide clear regulatory guidelines for the industry while excluding 'criminals' from the market.
The UK government will submit a legislative proposal to Parliament later on Monday. Unlike the EU, the UK does not intend to create a regulatory framework specifically for the cryptocurrency industry but has chosen to expand existing financial regulations to cover cryptocurrency-related businesses.
A Treasury spokesperson stated that the cryptocurrency regulatory draft has undergone only minor modifications since its release earlier this year.
Looking globally, the attention on crypto assets has noticeably warmed in recent years, especially after U.S. President Donald Trump took office, publicly releasing relatively friendly policy signals towards the cryptocurrency industry, further boosting market discussion.
Currently, the United States is generally seen by the market as one of the major economies with a relatively open attitude towards the cryptocurrency industry; in contrast, the UK's past regulatory stance has been relatively conservative, while the European Union has already taken the lead in establishing a complete and specific industry regulation through MiCA.
The UK government has also expressed its intention to discuss and coordinate the regulatory direction of digital assets with the United States through a 'Transatlantic Working Group' in the future.
UK Chancellor of the Exchequer Rachel Reeves stated that the core goal of the new regulations is to establish 'clear rules' for the market, strengthening consumer protection on one hand and excluding 'wrongdoers' from the market on the other.
However, the market is not entirely optimistic. Natalie Lewis, a partner at the London law firm Travers Smith, pointed out that she hopes the final version of the legislation will be 'not just minor adjustments' since there are still 'quite a few technical legal issues' in the original draft that need further clarification and correction.
Currently, the UK's cryptocurrency regulatory system is rapidly taking shape, with the Financial Conduct Authority (FCA) planning specialized rules for cryptocurrency trading and market abuse, custody, and issuance; the Bank of England (BoE, central bank) announced last month a regulatory proposal for stablecoins used for everyday payments.
The Bank of England and the FCA have both committed to finalizing the cryptocurrency regulatory rules by the end of 2026, paving the way for a formal launch in 2027.
Back then, 'selling gold too early' became a laughingstock! Now the UK wants to 'sell off Bitcoin' again; will it make another mistake?
"UK Treasury: Cryptocurrency to be included in financial regulation, targeting implementation in October 2027" This article was first published in (Blockke).
