The UK Treasury is drafting new regulations to govern the cryptocurrency market.

The UK Treasury is developing rules requiring cryptocurrency companies to comply with a range of standards, with the Financial Conduct Authority (FCA) overseeing regulation. Cryptocurrencies will be regulated in a manner similar to other financial products, under legislation set to take effect in 2027. UK government officials have been pushing for reforms to the crypto market, which has expanded rapidly as cryptocurrencies have become more popular as investments and payments. Because cryptocurrencies have not previously been subject to the same level of regulation as traditional financial products such as stocks and funds, consumers have often lacked the same level of protection. The UK government states that the new regulations will increase transparency in the crypto industry, enhance consumer confidence, and facilitate the identification of suspicious activity, the imposition of sanctions, and the accountability of companies. (Source: The Guardian)