UK Finalizes New Crypto Rules, Emphasizing Consumer Protection and Investment

On December 15, 2025, the UK Treasury announced the finalization of new legislation that will bring the cryptoasset sector under the same regulatory umbrella as traditional financial products, with the rules slated to fully come into force from 2027.

A comprehensive, firm regulatory framework

The new rules mandate that crypto firms—including exchanges, custodians, and digital wallets—must meet a clear set of standards and regulations overseen by the Financial Conduct Authority (FCA). This marks the end of the piecemeal, registration-only approach and establishes a comprehensive regulatory perimeter.

Chancellor of the Exchequer Rachel Reeves MP emphasized the dual purpose of the legislation, including consumer protection and innovations. It alms to provide millions of consumers with strong protections similar to those afforded for stocks and shares, thereby reducing risks from fraud and unregulated activity. Moreover, this step will give crypto firms “clear rules of the road” and the certainty needed to invest, innovate, and grow in the UK, solidifying the nation’s position as a world-leading financial center.

Global standard setting

This regulatory overhaul is part of a deliberate effort to make the UK a global destination for digital assets. By establishing a firm, proportionate, and transparent regime, the UK is aiming to both attract legitimate businesses and actively lock “dodgy actors” out of the UK market, setting a high standard for global compliance, similar to the EU’s MiCA framework.

The new regime will significantly enhance the regulatory oversight of crypto exchanges and custody providers, allowing for easier detection of suspicious activity, market abuse, and non-compliance with sanctions.

The finalized legislation ensures that the UK’s financial system is prepared for the digital age, treating crypto not as a niche technology, but as a critical, regulated asset class.

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