Cryptocurrency is to become regulated as the government says it plans to make the UK a “global destination for digital assets and attract more investment.” The FCA has launched a consultation on the proposed rules for regulating the sector following the legislation laid out in Parliament on Monday.
Cryptocurrency firms will need to register with the Financial Conduct Authority (FCA) in the same way other providers of financial services do at present. The new rules will come into effect from 2027.
The move will provide “legal clarity over the sector’s regulatory position and (boost) consumer confidence by ensuring consumers are robustly protected,” the government said. It comes just a week after the Property (Digital Assets etc) Act received Royal Assent.
The act formally recognises digital assets as personal property in the eyes of the law, allowing them to be treated in the same way as traditional assets: passed down through inheritance and recovered by creditors during bankruptcy, and with greater protections in the event digital assets are stolen. The legislation will also enable the use of digital assets as collateral for loans or mortgages.
The FCA’s consultation is seeking views on the regulatory framework for cryptocurrency based on its mantras of “clear information for consumers, proportionate requirements for firms, and flexibility to support innovation.”
Views are being sought on the information cryptocurrency firms must disclose to enable investors to make an informed investment decision. The consultation and its responses will also help to create the regulatory framework for a fair market, tackle the risk of insider trading and manipulation, explain how to deal with intermediaries, set out rules to protect lenders and borrowers, and offer financial safeguards for firms.
David Geale, executive director for payments and digital finance at the FCA, said:
“Regulation is coming – and we want to get it right. We’ve listened to feedback, and now we’re setting out our proposals for the UK’s crypto regime.
“Our goal is to have a regime that protects consumers, supports innovation and promotes trust. We welcome feedback to help us finalise these rules.”
The FCA said it had made “significant progress” on a cryptocurrency roadmap, but warned the area remains largely unregulated.
On bringing cryptocurrency under the supervision of the FCA, Chancellor of the Exchequer Rachel Reeves MP said:
“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.
“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.”
Economic secretary to the Treasury, Lucy Rigby KC MP, added:
“We want the UK to be at the top of the list for cryptoassets firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term.”
The government concluded a comprehensive regulatory regime for cryptoassets enhances transparency and oversight across the sector, making it easier to detect suspicious activity, enforce sanctions and hold firms to account where they fall short.
The consultation is open now until 12 February 2026.
