UK to Regulate Crypto Markets Under New Law by 2027

The United Kingdom will bring cryptocurrency markets under formal regulatory oversight by 2027, establishing rules comparable to those governing traditional financial products. The Treasury announced the legislation will require crypto firms to meet strict standards enforced by the Financial Conduct Authority.

🚨 JUST IN: UK MOVES TO INTRODUCE NEW RULES TO POLICE CRYPTOCURRENCY MARKETS, THE GUARDIAN REPORTS. pic.twitter.com/RmBmW6IFxh

— Coinwaft (@coinwaft) December 15, 2025

Chancellor Rachel Reeves confirmed the move positions Britain as a leading digital finance hub. The new framework aims to protect consumers while providing businesses with regulatory clarity for long-term planning and investment.

Chancellor Reeves emphasized consumer protection as a central goal. Millions of UK crypto holders will gain stronger safeguards under the new regime. The framework also aims to create high-skilled jobs within the regulated industry.

City Minister Lucy Rigby also emphasized the government’s ambition to attract crypto businesses. She stated the regulations will give firms the consistency needed to grow operations in the UK market.

UK Property Rights Secured Through Landmark Legislation

The regulatory push follows another significant milestone for digital assets in Britain. On December 3, 2025, the Property (Digital Assets, etc.) Bill received royal assent after King Charles granted approval.

The law formally recognizes cryptocurrencies as property under UK legislation. Previously, digital assets existed in a legal gray area defined primarily through individual court rulings. The new statute codifies what judges had been applying on a case-by-case basis.

Industry groups celebrated the decision as a breakthrough moment. Bitcoin Policy UK called the law “a massive step forward” for digital assets. Trade body CryptoUK noted Parliament has now written into law what courts had long recognized informally.

The legislation provides clearer legal footing for proving ownership and recovering tokens after fraud. CryptoUK emphasized this clarity will strengthen protections for holders of digital assets.

Industry Voices Caution Amid Regulatory Progress

Not all market participants share enthusiasm for expanded crypto access. Hargreaves Lansdown, the UK’s largest retail investment platform, issued warnings following the October 2025 lifting of restrictions on crypto exchange-traded notes.

🚀 UPDATE: THE UK HAS ENDED ITS FOUR-YEAR BAN ON CRYPTO EXCHANGE-TRADED NOTES, AS THE FCA NOW PERMITS RETAIL INVESTORS TO TRADE CRYPTO ETNS ON FCA-APPROVED EXCHANGES. pic.twitter.com/Yol19jIADg

— Coinwaft (@coinwaft) October 9, 2025

The ban on retail investors accessing crypto ETNs ended on October 8, 2025. These debt instruments provide exposure to digital tokens through regulated exchanges without direct ownership.

Hargreaves Lansdown stated clearly that it does not view Bitcoin as an asset class. The platform warned that cryptocurrency lacks characteristics suitable for growth or income portfolios. It cautioned investors against relying on digital assets to meet financial goals.

Performance assumptions are not possible to analyse for crypto, and unlike other alternative asset classes it has no intrinsic value

the company stated.

Meanwhile, the government announced investors can hold crypto ETNs in stocks and shares ISA accounts. This allows up to £20,000 annually to be invested in these products tax-free.

Officials argued lifting the ETN ban supports growth and competitiveness in the UK crypto industry. Crypto firms welcomed the change as a major breakthrough for the sector.

The 2027 regulatory framework will require crypto exchanges and digital wallet providers to register fully with the FCA. Currently, these firms only register if their services fall within the money laundering regulation scope.

The government stated the expanded rules will lock dodgy actors out of the UK market. Legitimate businesses will receive support through clearer operational guidelines.