The United Kingdom will regulate cryptocurrencies as traditional financial products by 2027

Source: PortaldoBitcoin Original Title: The UK Will Regulate Cryptocurrencies as Traditional Financial Products by 2027 Original Link: The United Kingdom plans to implement rules by 2027 to regulate cryptocurrencies under the same framework as traditional financial products, with legislation that will establish a set of standards overseen by the Financial Conduct Authority (FCA).

With this measure, the British government aims to increase transparency in the cryptocurrency sector, making it easier to identify suspicious transactions, enforce sanctions, and hold companies accountable.

The news comes after the approval, earlier this month, of the Digital Assets Law (DigitalAssetsLaw), which defined digital assets as a legally recognized form of property.

“By providing companies with clear rules, we are offering the security needed for them to invest, innovate, and create highly skilled jobs here in the UK, while also providing robust consumer protection and preventing fraudulent agents from entering the British market,” said Finance Minister Rachel Reeves.

The UK currently requires cryptocurrency companies to register with the FCA in compliance with the agency’s anti-money laundering and counter-terrorism financing obligations. This includes proper “know your customer” (KYC) diligence and the obligation to report suspicious transactions.

Meanwhile, the FCA is also stepping up efforts to promote and regulate stablecoins pegged to the British pound. In a recent letter to Prime Minister Keir Starmer, FCA CEO Nikhil Rathi stated that the agency will prioritize allowing local companies to experiment with payments using stablecoins in 2026, based on an experimental regulatory environment (sandbox) launched earlier this year.