The new rules will mimic those applicable to traditional financial institutions, including rules around financial transparency.
The UK Treasury has today (December 15) announced it plans to introduce new regulations for crypto companies in 2027.
Legislation is being planned to be rolled out over the next two years aiming to give operating crypto and digital asset companies “legal clarity over the sector’s regulatory position”, according to a statement released by HM Treasury.
Firms will need to be cleared to operate by the Financial Conduct Authority (FCA) and will be regulated by the new rules which are similar to those traditional financial institutions have to adhere to.
The Treasury revealed some of the incoming new rules will involve similar traditional financial transparency, as well as regulations that traditional financial products follow, such as stocks and shares.
The UK government has observed the growth of the crypto sector over the past several years and views it as a market that can attract investment. It also addressed the need for firm and proportionate rules in order to attract such investment and some of the key players in the industry to operate in the UK.
“Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world leading financial centre in the digital age,” said Rachel Reeves, UK Chancellor of the Exchequer.
“By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.”
Keeping up with competitors?
The news of incoming crypto and digital asset regulations will help serve the UK’s growing market as it continues to remain one of the largest globally despite the lack of formal regulations.
Chainalysis ranked the UK as the 11th largest crypto market in 2025 within its Global Index Rankings. However, the likes of India (first), the US (second) and Indonesia (seventh) are still comfortably ahead of the UK, in part due to implemented rules and regulations.
The US, under the second term of President Donald Trump, passed the CLARITY and GENIUS Acts this past summer which provide greater transparency for rules around its respective crypto market, as well as swell adoption of stablecoins.
Indonesia has continually updated and drafted new laws pertaining to crypto and digital asset regulation; most recently in November 2025 when the Digital Financial Assets draft was first lobbied to how digital assets should be offered by companies and standards implemented to ensure who can offer these products.
While the world has continued to press with crypto regulations, the UK has been perceived as more passive, opting to introduce rules surrounding the promotion and marketing of crypto services.
This perceived lack of actionable regulations has drawn criticism. One of the most vocal critics is ex-UK Chancellor George Osborne, who warned the UK is set to miss out on the next crypto boom period; stablecoin adoption.
Despite the criticism, the Labour government has committed to driving forward with regulations and making the UK an attractive market for crypto and digital asset companies to invest and operate in.
One of its strategies to achieve this was the formation of a new crypto taskforce in partnership with the US, designed to set up options for short-and-medium term collaborations on developing digital asset and capital markets, in tandem with developing regulatory policies in both markets.
Within its announcement of new crypto regulations coming in 2027, HM Treasury announced it is continuing with its partnership with the US to foster “innovation and growth in cryptoassets, through the Transatlantic Taskforce”.
‘2026 the year the UK becomes a serious crypto hub’
Speaking to Payment Expert, Nick Jones, Founder and CEO of Edinburgh-based digital asset company Zumo, believes the announcement of incoming crypto regulations will set the stage for if the UK wants to become a “genuine crypto hub”.
“Earlier this month, the UK legitimised our sector by formally recognising cryptocurrencies and stablecoins as legal property, after the Property (Digital Assets etc) Bill received royal assent.
“With today’s announcement, momentum is starting to snowball as we head towards 2026 – which will be the year the UK becomes serious about establishing itself as a genuine crypto hub. Many in the industry have been loudly lobbying for the appropriate regulatory framework that will facilitate new avenues of economic growth, so this is very welcome news.”
Jones also welcomes the alignment of crypto and traditional financial rules as this would clear up any compliance confusion for incoming companies, as well as potentially benefitting cross-currency payments with fiat and digital currencies.
“By legislating to extend existing financial regulation to companies involved in crypto, rather than producing complicated rules tailored to the industry as seen with the EU’s Markets in Crypto-Assets Regulation (MiCA), policymakers are sending a clear signal that they believe digital assets can successfully coexist with fiat money in a reimagined future financial system.
“We now have the clarity and certainty we’ve been seeking to lay firm foundations for further investment and innovation that will keep the UK at the forefront of financial services. The new laws will bring greater transparency to the sector, keeping bad actors at bay while ensuring consumers benefit from the robust protection they rightly expect from any financial product or service.”
