UK to regulate crypto as financial products starting in 2027

The United Kingdom plans to classify cryptocurrencies as financial products and strengthen its regulatory framework. According to The Guardian, the UK Treasury announced that starting in 2027, crypto assets will be placed under the supervision of the Financial Conduct Authority (FCA) and regulated as strictly as traditional financial instruments. This measure is intended to address previously inadequate consumer protection, as crypto was not subject to the same rules as products like stocks. Under the new regulations, crypto firms will be required to register with the FCA if they are subject to anti-money laundering laws. Chancellor of the Exchequer Rachel Reeves explained that bringing crypto into the regulatory perimeter is a crucial step in making the UK a leading global financial hub in the digital age. She added that the move will provide clear rules for businesses, encourage investment and innovation, strengthen consumer protection, and prevent illicit activities.