UK Confirms October 2027 Start Date for Full Crypto Regulation

TLDR

• The UK will begin enforcing full cryptocurrency regulations in October 2027, extending existing financial rules to crypto firms.
• Britain’s approach aligns more with the US than the EU’s MiCA framework, using adapted financial laws.
• The FCA and BoE will finalize rules on trading, custody, and stablecoins by the end of 2026.
• Crypto firms like Gemini welcomed the clarity, while legal experts raised concerns over technical issues in the draft bill.
• UK regulators continue to warn about high risks in crypto, stressing the need for strong consumer protections.

The UK will implement full cryptocurrency regulation starting in October 2027. According to a report by Reuters, the new law will extend existing financial rules to cover crypto-related companies and services.  This move aligns Britain more closely with the United States than the European Union’s framework. The draft bill has only minor updates since its earlier publication. A ministry spokesperson confirmed that the final version reflects the original draft closely.

UK Targets Industry Certainty Through Regulation

The UK plans to give firms regulatory clarity by setting a defined timeline and legal framework. The Financial Conduct Authority (FCA) and the Bank of England (BoE) will finalize their own rules by the end of 2026. Together, the agencies will cover crypto trading, custody, issuance, and market conduct.

Daniel Slutzkin, UK head at crypto exchange Gemini, welcomed the announcement. “Firms have long awaited regulatory clarity,” he said. He added that businesses can now begin preparing for compliance. The new framework differs from the EU’s Markets in Cryptoassets (MiCA) regulation, which began in 2024. The UK will instead adapt existing financial regulation to crypto activities. This allows regulators to apply familiar rules to a new asset class.

The BoE recently issued proposals on how to regulate stablecoins used for payments. The FCA is also designing bespoke rules for market abuse, custody, and trading practices. Both institutions are expected to deliver final rules before 2027.

Draft Bill Receives Mixed Legal Feedback

The bill introduced Monday received feedback from legal experts following its initial draft. Natalie Lewis, partner at Travers Smith, noted issues remain. “There are quite a few technical legal problems with the original draft,” she said.

She added that she hopes final legislation brings more than minor revisions. The ministry has not announced any major changes. Lawmakers are expected to begin debating the bill shortly. The UK and US continue to collaborate on digital assets policy through a transatlantic task force. The government confirmed this coordination will remain active. Regulators aim to balance innovation with investor protection.

The FCA and BoE have warned that crypto investments carry high risk. They stated investors should be prepared to lose all their money. Regulators still see the need for strong consumer safeguards. The price of Bitcoin has declined in recent months despite global interest in crypto. The government said regulation is key to long-term market health. Industry stakeholders are watching closely as the UK framework takes shape.