New legislation

The Treasury, the UK’s finance ministry, proposed to give oversight of the crypto sector to the Financial Conduct Authority, in line with the regulator’s existing remit, according to a statement. The framework has three principal aims: improving transparency, boosting consumer confidence, and strengthening the tools available to identify and punish illicit activity.

No rush to be a world leader

Rachel Reeves, the chancellor of the exchequer, said: “Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age.”

Interest in crypto continues to grow. Gemini’s State of Crypto UK report found that 24 per cent of UK respondents now own cryptocurrency, up from 18 per cent in 2024. The survey was published in October, when Bitcoin was still trading well above $100,000, but nonetheless points to the sector’s rising popularity.

Implementation timetable

Despite this, ministers are moving cautiously. The implementation timetable means the new rules are not expected to come into force until October 2027, underlining the government’s preference for a measured approach rather than a dash to establish the UK as a global crypto hub.

This differs from the European Union’s strategy of designing bespoke rules specifically for the crypto market.

The Treasury did not immediately respond to Sandmark’s request for further comment.