The UK plans to regulate cryptocurrency under a structured regime by October 2027, departing from basic Anti-Money Laundering registration. The Financial Conduct Authority is defining standards for crypto firms, moving towards a detailed licensing system. An independent review on foreign financial interference could lead to restrictions on cryptocurrency for political donations.

The UK is transitioning to a formal rulebook for crypto regulation, mirroring traditional financial frameworks. Until late 2025, most crypto activity was governed by anti-money laundering rules, lacking consumer protection or market oversight. The UK aims to bring crypto activities within the core financial services perimeter, aligning them with traditional financial standards by 2027.

In December 2025, the UK government introduced regulations to regulate crypto activities under the Financial Services and Markets Act 2000. This framework will be implemented in stages, with full commencement by October 2027. The FCA will develop detailed regulations to foster innovation, improve consumer protection, and prevent regulatory gaps from being exploited.

The FCA has launched consultations to establish practical, enforceable rules for crypto activities. Stakeholder responses are due by February 12, 2026, with final rules expected in 2026. The consultations aim to set operational requirements for trading platforms, enhance transparency for token issuers, and establish prudential requirements for firms to protect users and maintain system stability.

UK lawmakers are reviewing potential safeguards in political finance laws regarding cryptocurrency donations. Concerns about traceability have led to discussions on restricting political crypto donations. The review may inform future policy recommendations, with potential changes requiring new legislation.

Read more at Cointelegraph: How the UK Plans to Regulate Crypto Like Traditional Finance