UK to Regulate Crypto Under FCA by 2027, Ban Political Donations
5.7 Regulation The UK will regulate cryptocurrencies under the FCA by 2027, aiming to boost transparency, consumer protection, and accountability. Crypto firms must register with the FCA, and political donations in crypto will be banned.
The UK Treasury is preparing to introduce comprehensive regulations for the cryptocurrency market by 2027, bringing digital assets under the oversight of the Financial Conduct Authority (FCA). The new rules will require crypto companies, including exchanges and digital wallets, to register with the FCA and comply with standards similar to those for traditional financial products. The regulations aim to enhance transparency, consumer protection, and accountability, addressing concerns over fraud, money laundering, and investment scams. The government also plans to ban political donations made with cryptocurrency due to difficulties in verifying their origin and ownership. These measures are intended to provide clear compliance guidelines for crypto businesses, boost consumer confidence, and support the UK's position as a leading financial centre in the digital age. Industry reactions are mixed, with some supporting increased oversight and others expressing concerns about potential impacts on innovation.
