The UK Treasury has outlined a plan to bring crypto assets under the same regulatory framework as traditional financial products by 2027.
This move seeks to establish a formal framework for the burgeoning sector.
Under the forthcoming legislation, the Financial Conduct Authority will oversee a new regime of rules.
The government says this will improve transparency, help detect suspicious transactions, enforce sanctions, and ensure that companies are held accountable.
Currently, UK crypto companies must register with the FCA and comply with anti-money laundering and counter-terrorist financing rules.
These requirements include "know your customer" checks and the obligation to report suspicious activity.
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