Media: UK preparing comprehensive crypto market regulation reform
Date: 2025-12-16 Author: Henry Casey Categories: IN WORLD
The UK Treasury is working on creating a new regulatory regime for the cryptocurrency industry that will place digital assets on par with traditional financial instruments. According to The Guardian, the government plans to expand the current regulatory framework to include the crypto market in order to strengthen oversight and enhance user protection.
According to the preliminary concept, companies providing cryptocurrency-related services will be required to comply with requirements similar to those applied to banks, investment firms, and other financial institutions. Oversight of the industry is expected to be transferred to the Financial Conduct Authority (FCA), with updated regulations scheduled to be launched in 2027.
Chancellor of the Exchequer Rachel Reeves emphasized that the creation of a clear regulatory framework is seen as a strategic step to maintaining the UK's status as a leading global financial center. According to her, clear and transparent regulations will attract long-term investment, support the development of innovative technologies, and simultaneously reduce risks for private investors.
Cryptocurrency exchanges, digital asset custody services, and other key market players are expected to face stricter requirements in the areas of corporate governance, disclosure, and risk management. Furthermore, companies working with digital assets will be required to register with the FCA and comply with current anti-money laundering and counter-financing regulations.
The authorities explain the need for reforms by the rapid growth in popularity of cryptocurrencies as an investment instrument and alternative means of payment. At the same time, government agencies are recording an increase in the number of fraudulent schemes related to crypto assets. Banking sector representatives note that financial losses from investment scams in the country have increased significantly over the past year, and fictitious crypto projects remain one of the most vulnerable areas.
Special attention is being paid to the use of cryptocurrencies in political donations during the discussion. Officials point to the difficulties in tracing the origin of such funds and identifying their ultimate owners, which could pose threats to the transparency and legitimacy of political funding.
Overall, the government's approach envisions the gradual integration of cryptoassets into the existing financial system without drastic restrictions on the industry. Authorities are seeking to find a balance between supporting technological development and strengthening oversight to minimize risks for the economy, investors, and the state.
