UK Eyes Rules to Keep ‘Dodgy Actors’ Out of Crypto

The United Kingdom is reportedly set to begin regulating cryptocurrencies starting in October 2027.

The goal is to provide certainty for the industry and push away “dodgy actors,” Reuters reported Sunday (Dec. 14), citing comments from the country’s finance ministry.

The law, set to be introduced Monday (Dec. 15), is designed to extend the country’s existing financial regulation to companies involved in the crypto space, the report said, adding that this puts the U.K. more in line with the United States than Europe in terms of regulating crypto.

A draft of the regulation has seen minor changes since its publication earlier in the year, according to the report.

The U.K. said it will work with the U.S. on the best approach to regulating digital assets through a “transatlantic taskforce.”

Finance minister Rachel Reeves said the guidelines would offer “clear rules of the road,” bolster consumer protections and keep “dodgy actors” away from the crypto market, the report said.

Natalie Lewis, a partner at London-based law firm Travers Smith, said in the report that she is hopeful the changes in the final legislation would be “more than minor,” adding there are “quite a few technical legal problems with the original draft.”

Meanwhile, the U.K.’s regulatory regime for crypto is taking shape, with the Financial Conduct Authority working on rules for trading and market abuse, custody and issuance, and the Bank of England last month unveiling proposed stablecoin regulations, per the report.

In other crypto regulation news, banks in the U.S. and other markets are making sure that they play a role in crafting crypto infrastructure in spite of policy gridlocks.

Global financial institutions have spent this year at work on stablecoins, tokenized deposits, bitcoin exchange-traded funds and digital asset treasury solutions.

“However, regulations have failed to progress in step with the guidance needed for the success of many banks’ announcements,” PYMNTS wrote Dec. 8. “For example, the GENIUS Act regulating stablecoins was enacted on July 18 but has yet to be implemented. Meanwhile, competing drafts of crypto markets regulations have yet to see a floor vote and remain in committee.”

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