Britain's Plan for Crypto: What's Changing and When?

Britain is stepping up its game in the crypto world. Starting in October 2027, cryptoassets will fall under new regulations. The finance ministry announced this move, aiming to create a safer environment for the industry while keeping out shady players. The new rules will extend existing financial regulations to crypto companies. This brings Britain closer to the U. S. approach, rather than the EU's tailored regulations. The draft bill has seen only minor tweaks since it was first published earlier this year. Globally, crypto has been gaining attention, especially since U. S. President Donald Trump showed support for the industry. However, the value of bitcoin has taken a hit recently, dropping after hitting an all-time high. The U. S. is seen as more crypto-friendly compared to Britain, while the EU's rules have already been in effect since 2024. Britain plans to work with the U. S. through a transatlantic taskforce to find the best approach to digital assets. Finance minister Rachel Reeves believes these rules will provide clear guidelines, protect consumers, and keep the market clean. Natalie Lewis, a partner at Travers Smith, hopes the final legislation addresses the technical legal issues in the original draft. Britain's Financial Conduct Authority (FCA) is working on specific rules for trading, market abuse, custody, and issuance. The Bank of England has also proposed rules for stablecoins, which are used for everyday payments. Both the BoE and the FCA aim to finalize their rules by the end of 2026. Daniel Slutzkin, head of UK at crypto exchange Gemini, welcomes the regulatory clarity, allowing firms to prepare for the new requirements. However, regulators continue to warn investors about the risks, including the possibility of losing all their money in crypto investments.