Britain to Begin Crypto Regulation Under FCA Starting 2027, Treasury Says

The UK has officially signaled its next big move on crypto regulation, confirming that full oversight of the digital asset sector will begin under the Financial Conduct Authority (FCA) starting in 2027. While that date may sound far off, the announcement itself sends a strong message: Britain wants crypto inside the regulatory system, not outside it.

According to the Treasury, the goal isn’t to choke innovation but to bring clarity, consistency, and consumer protection to a market that has grown faster than existing rules. Under the upcoming framework, crypto exchanges, brokers, custodians, and other service providers operating in the UK will need to meet FCA standards similar to those applied to traditional financial firms. That includes requirements around governance, transparency, capital controls, and how customer assets are handled.

For the industry, this is a mixed but mostly positive signal. On one hand, stricter rules will raise compliance costs and may push smaller or weaker players out. On the other, regulatory certainty could attract more institutional capital, partnerships with banks, and long-term investors who have been waiting on the sidelines.

Importantly, the UK is positioning itself differently from both the EU and the US. By taking more time and consulting closely with industry, Britain appears to be aiming for a balanced approach rather than rushed enforcement.

In short, 2027 marks the end of crypto’s regulatory grey zone in the UK—and the beginning of a more mature, mainstream phase for digital assets.