New crypto rules aim to unlock growth while strengthening consumer protection
The UK government has announced significant new plans to bring cryptoassets firmly within the regulatory perimeter, marking a major step towards its ambition of making the UK a global hub for digital assets.
Under the proposals, firm and proportionate regulation will come into force from 2027, providing long-awaited legal clarity for cryptoassets firms while ensuring consumers benefit from protections similar to those in place for traditional financial products such as stocks and shares.
What’s changing?
The new regime will require cryptoassets firms to be regulated by the Financial Conduct Authority (FCA), aligning them with established transparency and conduct standards already applicable across the wider financial services sector. This move is intended to boost consumer confidence, improve market integrity and deter bad actors from operating in the UK market.
For firms operating in, or considering entering, the cryptoassets space, the changes are designed to offer clearer “rules of the road”, enabling long-term planning, investment and innovation.
Supporting innovation and growth
The Chancellor of the Exchequer has emphasised that bringing cryptoassets into regulation is central to securing the UK’s position as a world-leading financial centre in the digital age. By combining robust consumer protection with regulatory certainty, the government aims to attract investment, encourage innovation and support the creation of highly skilled jobs in the UK.
The Economic Secretary to the Treasury has also highlighted the importance of clarity and consistency, noting that these reforms are intended to make the UK one of the most attractive destinations globally for cryptoassets firms looking to grow.
A global approach to regulation
The new framework will also help the UK shape global standards for cryptoassets regulation. By enhancing transparency and oversight, the regime will make it easier for regulators to detect suspicious activity, enforce sanctions and hold firms to account where standards are not met.
This announcement sits alongside ongoing collaboration with international partners, including the United States, through the Transatlantic Taskforce, to promote responsible innovation and sustainable growth across the sector.
How Parker Russell UK can help
The introduction of FCA regulation will have important implications for cryptoassets businesses, investors and those providing related services. From understanding regulatory requirements and governance expectations to assessing tax and compliance impacts, early preparation will be key.
If you would like advice on how these changes may affect you or your business, the Parker Russell UK team is here to help. Please get in touch with us on 0207 378 7500 to discuss your circumstances and next steps.
Info obtained here
