UK Plans to Regulate Cryptocurrencies Under Financial Authority by 2027

The UK Treasury plans to bring cryptocurrencies under the Financial Conduct Authority’s regulations by 2027, mirroring existing financial product guidelines, as announced by Chancellor Rachel Reeves.

This regulatory shift aims to enhance transparency, bolster consumer confidence, and prevent illicit activities in the cryptocurrency sphere, impacting both crypto businesses and political donation practices.

Industry Faces Compliance Challenges Amid Regulatory Changes

The UK Treasury’s intent to bring crypto activities under FCA supervision marks a significant shift in regulatory approach. Over the years, the FCA has had an anti-money laundering (AML) and counter-terrorism financing (CTF) registration regime for crypto. As part of these changes, the UK government is considering banning crypto for political donations. There’s no official text about this ban yet.

The regulatory shift aims to treat crypto firms like investment enterprises. UK-focused entities must adapt and prepare for rigorous compliance. These updates may lead to compliance burden and potential withdrawal of non-compliant firms from the UK market.

The market response has included concerns from stakeholders about compliance challenges. Chancellor Rachel Reeves emphasized her priority on transparency and safety, while experts caution against stifling innovation in this growing sector. Her statement highlights the importance of high regulatory standards:

Market Data and Future Insights

Did you know? Historically, the UK’s regulations on stablecoins indicate this will align more with global practices, impacting major exchanges.

As of December 15, 2025, Bitcoin’s current price stands at $89,826.75 with a market capitalization of $1.79 trillion and dominance of 58.54%, according to CoinMarketCap. Over the past 30 days, Bitcoin prices fell by 6.40%, and its current circulating supply is 19,962,334 BTC.

The Coincu research team suggests that the firm’s regulatory demands will alter the landscape, pushing minor players to consolidate or exit. The market response has included concerns from stakeholders about compliance challenges.