UK Treasury plans new rules to control cryptocurrency market
The UK Treasury is preparing new rules to better control the cryptocurrency market. Chancellor Rachel Reeves says the aim is to protect consumers by bringing digital money and crypto assets under official regulation.
From 2027, cryptocurrencies will be regulated in a similar way to other financial products such as stocks and shares. The Treasury is working on rules that will require crypto companies to follow clear standards set by the Financial Conduct Authority (FCA).
The government wants to change the crypto market because it has grown quickly and is now widely used for investing and making payments. Until now, cryptocurrencies have not followed the same rules as traditional financial products, meaning consumers often had less protection.
The government said the new rules will make the crypto industry more open and transparent. They will also increase consumer trust, help authorities spot suspicious activity, apply sanctions when needed, and hold companies responsible for wrongdoing.
Rachel Reeves said that bringing crypto under regulation is an important step to keep the UK a leading global financial centre in the digital age. She added that clear rules will help companies invest, innovate, and create skilled jobs in the UK, while protecting consumers and keeping dishonest firms out of the market.
Crypto businesses, including exchanges and digital wallet providers, already need to register with the FCA if they offer services covered by UK anti–money laundering laws.
The new Treasury plans will expand the FCA’s role, meaning more crypto services will be regulated in the same way as other financial products and must meet strict transparency standards.
Lucy Rigby, the minister for the City of London, said the UK wants to attract growing crypto companies, and the new rules will give them the clarity and stability needed to plan for the future.
The cryptocurrency market has been unstable as investors worry about a possible bubble in artificial intelligence.
In October, banking data showed that UK consumers lost 55% more money to investment scams compared to last year. Fake cryptocurrency schemes were the most common scams.
In September, a Chinese woman living in the UK was found guilty of a huge bitcoin fraud worth billions of pounds.
Zhimin Qian, also known as Yadi Zhang, ran a scam in China between 2014 and 2017 that caused losses for 128,000 people. The 45-year-old kept the stolen money in bitcoin. UK police made progress in 2018 when they searched a mansion in Hampstead and seized devices holding 61,000 bitcoins, now worth over £5 billion.
The Metropolitan Police say this is the largest single cryptocurrency seizure ever. On Monday, Qian admitted in Southwark Crown Court that she had obtained and held cryptocurrency linked to crime.
The government is also planning to ban political donations made using cryptocurrency. Ministers are worried because it is hard to know where these donations come from and who owns them.
Reform UK, led by Nigel Farage, became the first political party in the UK to accept cryptocurrency donations this year. The party is believed to have received its first reportable crypto donations this autumn. It has created a special crypto system for donations and says it carries out extra checks.
This month, Reform UK received £9 million from Christopher Harborne, a cryptocurrency investor based in Thailand. This is the largest donation ever made by a living person to a UK political party.
Published: 15th December 2025
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