Chancellor Rachel Reeves is planning new legislation to support the growth of cryptoassets in the UK and to provide a clearer, more transparent crypto regulatory regime.

Ms Reeves says the new legislation, coming into force from 2027, will enable cryptoasset firms to, “invest and grow in the UK with firm and proportionate regulation.”

She says the new legislation will help deliver on the government's ambition to make the UK a “global destination” for digital assets.

Consumers will be protected by bringing cryptoassets into the scope of similar rules to those for other regulated financial products like stocks and shares, she said.

She said firms would gain “legal clarity” over the sector’s regulatory position which would boost consumer confidence by ensuring consumers were robustly protected. 

The changes mean that crypto firms will be regulated by the Financial Conduct Authority in the same way as other providers of financial products – including being subject to established transparency standards. The FCA currently regulates some crypto asset products.

The Treasury said the new regime was designed to support responsible innovation, ensure open and competitive markets and promote the UK as a destination of choice for digital asset businesses. 

Ms Reeves 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.

“By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.”   

Economic Secretary to the Treasury, Lucy Rigby MP, said: “We want the UK to be at the top of the list for cryptoassets firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term.” 

The announcement comes as the government says it is continuing its work in partnership with the United States to, “foster innovation and growth” in cryptoassets, through the Transatlantic Taskforce.