How the UK plans to regulate crypto like traditional finance — TradingView

Key takeaways

• The UK plans to bring cryptocurrency within the financial services perimeter by October 2027, shifting toward a structured regulatory regime.

• The Financial Conduct Authority has launched consultations to define standards and requirements for crypto firms, with final rules expected in 2026.

• The new framework marks a move away from basic Anti-Money Laundering registration toward a detailed licensing system that mirrors traditional financial products.

• Separately, the government has launched an independent review into foreign financial interference, which could lead to future restrictions on the use of cryptocurrency for UK political donations.

The United Kingdom is moving away from a “wait-and-see” approach toward a formal rulebook that closely resembles the framework used by high-street banks. HM Treasury and the Financial Conduct Authority (FCA) have set October 2027 as the target date for full implementation of the country’s new crypto regime. FHM TrIt represents a structured integration of digital assets into the UK’s financial services perimeter.

Evolution of the UK crypto regulatory framework

The UK has long taken a cautious stance on cryptocurrency. Until late 2025, most crypto activity in Britain was primarily governed by Anti-Money Laundering (AML) rules, financial promotions requirements and guidance from the FCA. This meant firms had to demonstrate robust AML controls to be added to the FCA’s register, but they were not subject to the full scope of the UK’s financial services rulebook.

This was not a full regulatory regime, as it did not address consumer protection, capital requirements or market oversight in the way banking or brokerage regulations do. There was also uncertainty around the treatment of trading platforms, staking, decentralized finance (DeFi) and other advanced crypto services.

The planned regulatory shift, due by 2027, marks a shift away from the previous patchwork approach. Instead of regulating crypto primarily through AML compliance, the UK intends to bring crypto activities within the core financial services perimeter, aligning them with the legal standards applied to traditional financial products.

Did you know? As of late 2025, around 50 crypto firms were registered with the FCA for AML purposes, though many applications were reported to have fallen short of the regulator’s expectations on governance and risk controls.

The new UK crypto policy roadmap

In December 2025, the UK government took a landmark step by laying the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 before the UK Parliament for approval. This statutory instrument establishes the legal foundation for bringing a wide range of crypto activities within the scope of regulated financial services in the UK.

Under the regulations, implementation will take place in stages, building toward full commencement in October 2027. The measures expand the list of activities regulated under the Financial Services and…