The UK plans to start regulating cryptocurrency in 2027 by incorporating cryptoassets into existing financial services law, with full integration targeted for October 2027. The roadmap is led by the Financial Conduct Authority (FCA) and the Bank of England, with interim milestones including restored retail access to crypto exchange-traded notes in October 2025 and stablecoin rules due by late 2026.
The framework assigns primary conduct and solo-prudential oversight to the FCA, while the Bank of England focuses on financial stability risks and systemically important stablecoins. The strategy is designed to adapt established rules rather than create an entirely new regime, underpinned by the principle “same risk, same regulatory outcome,” according to the plan overseen by the FCA and the Bank of England.
Key dates are staged across three phases: retail trading in crypto exchange-traded notes (cETNs) may resume from October 2025 on FCA-approved exchanges; a dedicated stablecoin regime is expected by late 2026 with supervisory roles split between the FCA and the Bank of England; and full application of financial services law to qualifying cryptoassets is scheduled for October 2027.
The approach adapts multiple regulatory pillars to crypto markets. Anti-money laundering and counter-terrorist financing rules will be extended with stronger KYC requirements. Market-abuse rules will be tailored to cryptoasset trading platforms, requiring public disclosure of inside information and prohibiting market manipulation.
Regulatory architecture and timeline for cryptocurrency
The planned prudential framework introduces COREPRU and CRYPTOPRU: COREPRU sets baseline financial adequacy and liquidity expectations, while CRYPTOPRU will impose crypto-specific minimums and K-factor requirements to address concentration and operational risks.
Legal recognition of cryptoassets as personal property is incorporated into the plan, strengthening courts’ ability to issue injunctions, trace assets across chains and pursue proprietary remedies for theft and fraud.
The scope explicitly includes custody, exchanges, trading venues, lenders and staking providers, while decentralised finance (DeFi) activity is currently excluded.
Stablecoin rules will require transparent, secure reserves and fiat redemption, potentially using statutory trust structures. Non-systemic stablecoins fall under the FCA, while those deemed systemically important will come under the Bank of England’s remit.
The framework extends core conduct regimes to crypto firms, including SMCR (Senior Managers and Certification Regime), Consumer Duty, operational resilience standards and existing financial crime obligations. Restrictions on crypto lending products and the use of credit to buy crypto are under active consideration, signalling potential constraints on leverage and retail access.
“Same risk, same regulatory outcome” encapsulates the regulatory stance, reflecting the intent to align crypto oversight with traditional finance.
The roadmap clarifies roles, timelines and rule sets for crypto firms and market participants while prioritizing consumer protection and systemic risk mitigation.
