Overview
- HM Treasury introduced legislation to Parliament that extends existing financial regulation to crypto firms, placing them within the Financial Conduct Authority’s remit starting in October 2027.
- The approach aligns Britain more closely with the United States than the European Union’s MiCA regime, with ministers emphasizing clear rules to keep out “dodgy actors.”
- The FCA and Bank of England plan to finalize detailed rules by end‑2026 covering trading, market abuse, custody, issuance and stablecoins, giving firms time to prepare compliance systems.
- Officials cite consumer harm as a driver, referencing banking data showing a 55% annual rise in investment scam losses and a major case involving the seizure of 61,000 bitcoins linked to fraud.
- City minister Lucy Rigby says the UK can compete with the US as a crypto hub, industry voices welcome clarity, legal experts flag technical issues in the draft, and ministers are preparing a ban on crypto political donations.