Britain's Plan for Crypto: What's Changing and When?

Starting October 2027, cryptoassets will fall under new regulations in Britain. The finance ministry announced this move to create a safer environment for the industry while keeping out shady players.

Key Points

• New Rules: Existing financial regulations will extend to crypto companies.
• Global Context: Britain aligns closer to the U.S. approach than the EU's tailored regulations.
• Draft Bill: Minor tweaks since its initial publication earlier this year.

Global Crypto Landscape

• U.S. Support: Crypto gains attention, especially after U.S. President Donald Trump's support.
• Bitcoin Value: Recent drop after hitting an all-time high.
• Regulatory Differences: U.S. seen as more crypto-friendly; EU rules effective since 2024.

Collaboration and Goals

• Transatlantic Taskforce: Britain to work with the U.S. for the best approach to digital assets.
• Finance Minister Rachel Reeves: Aims for clear guidelines, consumer protection, and a clean market.
• Natalie Lewis (Travers Smith): Hopes final legislation addresses technical legal issues.

Specific Regulations

• FCA (Financial Conduct Authority): Working on rules for trading, market abuse, custody, and issuance.
• Bank of England: Proposed rules for stablecoins, aiming to finalize by the end of 2026.

Industry Response

• Daniel Slutzkin (Gemini): Welcomes regulatory clarity for firms to prepare.
• Regulatory Warnings: Investors cautioned about risks, including potential total loss in crypto investments.