Overview
- HM Treasury is introducing legislation to Parliament to extend existing financial regulation to crypto companies under FCA oversight, aligning the UK more closely with the US approach than the EU’s MiCA regime.
- The Financial Conduct Authority and the Bank of England plan bespoke rules for trading, market abuse, custody and stablecoins, aiming to finalize rulebooks by the end of 2026 ahead of the 2027 start date.
- A Treasury spokesperson said the draft bill has only minor changes from earlier versions, while industry voices welcomed clarity but noted technical legal issues that may need refinement.
- Ministers are preparing plans to ban political donations made with cryptocurrency because their origin and ownership are hard to verify.
- Officials cite rising consumer risk, including a 55% jump in investment-scam losses and a record 61,000-bitcoin seizure, as City minister Lucy Rigby argues regulatory certainty will help the UK compete with the United States.