Back
UK Treasury Plans Cryptocurrency Regulation by 2027 Under FCA Oversight

UK Treasury Plans Cryptocurrency Regulation by 2027 Under FCA Oversight

According to the Financial Times, the FCA has begun consultations on proposals to bring the crypto sector under formal regulation by 2027, marking a step toward comprehensive UK oversight.

Fact Check
The evidence provided strongly and consistently supports the statement. Multiple high-authority and highly relevant sources corroborate each component of the claim.A specialist legal and regulatory news service directly states that cryptoasset businesses will be brought under full UK regulation by the Financial Conduct Authority (FCA) in 2027. This single source confirms the regulator (FCA), the subject (crypto regulation), and the timeline (2027).This is further reinforced by an update from a major law firm, which specifies that a final report on the UK's 'Crypto Roadmap' is scheduled to be delivered to HM Treasury (HMT) in mid-2027, just before the new regulatory regime is implemented. This explicitly confirms the UK Treasury's planning role and the 2027 timeline.Furthermore, a primary source letter from the FCA itself to the Prime Minister confirms its active and designated role in overseeing crypto firms, solidifying its position as the regulator mentioned in the statement. Other sources confirm that the Financial Services and Markets Act 2023 provides the underlying legal framework for these regulatory plans.While some of the provided sources are irrelevant due to their focus on different topics (e.g., AI, pensions, access to cash), there are no sources that contradict the statement. The core claim is supported by a convergence of evidence from authoritative legal and regulatory sources, as well as the designated regulator itself.
Summary

The UK Financial Conduct Authority has initiated consultations on proposed rules to place the cryptocurrency industry under formal regulatory oversight by 2027, as reported by the Financial Times. The FCA released three consultation papers outlining measures on asset listing standards, anti-market manipulation safeguards, and operational requirements for trading platforms. The consultations support the UK government's plan to regulate crypto exchanges and stablecoin issuance within the existing financial services framework. FCA data shows UK adult crypto ownership fell from 12% to 8% over the past year, underscoring the need for robust consumer protection and market integrity.

Terms & Concepts
  • Financial Conduct Authority (FCA): The UK regulator overseeing financial markets and firms, responsible for setting and enforcing conduct and consumer protection rules.
  • Stablecoin: A cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency, used for payments and trading.
  • Market manipulation: Actions intended to artificially affect the price or trading volume of an asset, prohibited under financial regulations.