How the UK Plans to Regulate Crypto Like Traditional Finance

"The UK has long taken a cautious stance on cryptocurrency. Until late 2025, most crypto activity in Britain was primarily governed by Anti-Money Laundering (AML) rules, financial promotions requirements and guidance from the FCA. This meant firms had to demonstrate robust AML controls to be added to the FCA's register, but they were not subject to the full scope of the UK's financial services rulebook."

"The UK plans to bring cryptocurrency within the financial services perimeter by October 2027, shifting toward a structured regulatory regime. The Financial Conduct Authority has launched consultations to define standards and requirements for crypto firms, with final rules expected in 2026. The new framework marks a move away from basic Anti-Money Laundering registration toward a detailed licensing system that mirrors traditional financial products. Separately, the government has launched an independent review into foreign financial interference, which could lead to future restrictions on the use of cryptocurrency for UK political donations."

The UK will integrate cryptocurrency into the financial services perimeter by October 2027, moving beyond AML registration toward a structured licensing regime. The Financial Conduct Authority has opened consultations to define conduct, capital, consumer protection and market oversight standards, with final rules expected in 2026. Firms currently on the AML register will face new requirements covering trading platforms, staking and decentralized finance activities. The government has launched an independent review of foreign financial interference that could restrict cryptocurrency use for political donations. The new framework aligns crypto regulation more closely with rules governing banks and brokerages.

Read at Cointelegraph