The UK Treasury has begun a sweeping regulatory reform to bring cryptocurrency and related services into the existing financial system. From 2027, crypto exchanges and digital wallet providers will be supervised under the same standards as traditional financial institutions. The regime aims to establish a single supervisory framework for the crypto market, with the Financial Conduct Authority (FCA) taking charge of the entire sector.
Not only exchanges and wallets but also intermediaries and payment service providers will be required to register with the FCA, meeting strict anti-money laundering, market manipulation prevention, and financial health standards. The government has prioritized consumer protection and market transparency. The current crypto landscape is fragmented across various blockchains and private platforms, raising concerns about fraud, price manipulation, and insider trading. In response, the FCA said that cryptocurrencies should be regulated like traditional financial markets.
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