The UK's Big Move: Crypto Gets the Same Rules as Banks

The UK is making a bold move to bring crypto under the same rules as traditional finance. By October 2027, crypto will be fully integrated into the UK's financial services perimeter. This means crypto firms will have to follow the same strict rules as banks and other financial institutions. The Financial Conduct Authority (FCA) is leading the charge. They've launched consultations to set new standards for crypto firms. These consultations will define what crypto firms need to do to operate legally. The final rules are expected to be ready by 2026. This is a big change from the past. Before, crypto firms only had to follow basic anti-money laundering rules. But now, they'll have to meet much stricter requirements. This includes things like consumer protection, capital requirements, and market oversight.The UK government has also laid out a new policy roadmap for crypto. This roadmap includes new regulations for crypto activities like trading, dealing, and custody services. The goal is to foster innovation while also protecting consumers and preventing bad actors from exploiting the system. The FCA has also published three consultation papers outlining proposed rules for crypto activities. These papers cover things like operational requirements for trading platforms, transparency for token issuers, and prudential requirements for firms. The outcome of these consultations will determine the final rules that crypto firms must follow. Separately, the UK government is also looking into the use of crypto in political donations. They've launched a review into foreign financial interference, which could lead to new restrictions on crypto donations. This review is expected to report by March 2026.