UK to push for comprehensive cryptocurrency regulation from 2027... FCA to oversee directly

Source: TokenPost Original Title: UK to Implement Comprehensive Cryptocurrency Regulations Including Bitcoin Starting 2027…FCA to Oversee Directly Original Link: The UK government plans to apply regulations similar to those for traditional financial products to the cryptocurrency industry starting from October 2027. As a result, cryptocurrency exchanges and digital asset-related companies will be directly supervised by the Financial Conduct Authority[image]FCA(.

The UK Treasury recently proposed legislation requiring cryptocurrency-related businesses to adhere to the regulatory standards of the overall financial system. The bill includes provisions to extend anti-money laundering)AML( regulations not only to existing financial institutions but also to cryptocurrency service providers. These companies will be required to register with authorities and will be subject to legal oversight and audits.

Until now, cryptocurrencies have been treated separately from traditional financial assets like stocks and bonds, but the rapid growth of the digital asset market and increasing associated risks over recent years have highlighted the need for regulation. The UK government explained that this move will enhance industry transparency, strengthen investor protection, and assist in detecting various illegal transactions.

Rishi Sunak, the UK Chancellor of the Exchequer, emphasized, “Cryptocurrency regulation is a crucial step for the UK to establish itself as a leading global financial hub in the digital finance era.” Maintaining global competitiveness in finance requires regulatory reforms for emerging industries.

The UK’s regulatory approach is more similar to the US model of expanding financial regulation than to the European Union’s independent cryptocurrency-specific regulations. In fact, the Financial Conduct Authority)FCA( and the Bank of England)BOE( have separately established market regulations, with the BOE recently announcing specific regulations targeting digital currencies like stablecoins.

This trend could serve as a long-term turning point for integrating the cryptocurrency industry into the formal financial sector. While immediate regulatory burdens will follow, it is expected to ultimately help build industry trust and expand the investment base.