Britain Charts Path to Treat Crypto as Traditional Finance by 2027

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Authorities in the UK intend to implement rules by 2027 that would regulate crypto assets similarly to conventional financial instruments. The Treasury is leading this initiative to formalize the sector’s oversight.

The Guardian reports that the Financial Conduct Authority will be tasked with enforcing a new set of standards. Objectives include improving transparency, simplifying the identification of illicit transactions, and ensuring companies can be held responsible.

Already, crypto businesses operating in the UK must comply with the FCA’s anti-money laundering protocols. This involves rigorous customer due diligence and reporting obligations for suspicious activity.

Some industry voices, like Consensys’s Bill Hughes, believe this approach is overly strict. He suggested it has harmed the UK’s competitive edge compared to the US, which he views as more accommodating. The regulatory announcement comes shortly after lawmakers passed legislation defining digital assets as legal property.

Chancellor Rachel Reeves framed the move as providing “clear rules of the road,” fostering investment and innovation while ensuring strong consumer protections and market integrity.