As we have previously and extensively detailed, the UK crypto regulatory landscape remains in a state of flux.
However, some stability is now finallyon the horizon.
On 29 April 2025, the Chancellor introduced much-needed draft legislation for the regulation of cryptoassets.
Overview
Firms looking to launch cryptoassets, or products connected to cryptoassets, in the UK will need to continuously assess the evolving UK regulatory landscape.
This includes evaluating whether authorisation from the Financial Conduct Authority (“FCA”) is required, as well as considering the potential applicability of anti-money laundering (“AML”) regulations, data protection laws, intellectual property issues and rules governing consumer advertising.
Current UK regulatory position and developments
To track developments, last year, Gherson’s criminal litigation, regulatory and investigations team wrote a blog entitled “UK crypto regulation – what changes does the recent HM Treasury Consultation Paper suggest lie ahead for UK crypto regulation”.
We subsequently wrote a blog entitled “UK crypto regulation – update in light of HM Treasury’s 30 October 2023 Response to their 1 February 2023 Consultation Paper”.
We have also previously written blogs entitled Non-fungible token (NFT) Regulation in the UK and Stablecoin regulation in the UK.
In our last blog on the subject, we looked at the HM Treasury Consultations and 30 October 2023 Response, in which the Treasury published detailed proposals for establishing a financial services regulatory regime for cryptoassets, including stablecoins.
In November 2024, the Government confirmed that it would proceed with the implementation of these proposals largely unchanged.
Draft legislation for regulating cryptoassets – HM Treasury announcement
At a recent major summit in London marking UK FinTech Week, the Chancellor announced that the UK has now published draft legislation for regulating cryptoassets.
From an accompanying HM Treasury Policy note, which provides commentary on the draft Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025, the following is apparent:
Specifically, the draft provisions amend the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 to:
- Define “qualifying cryptoassets” and “qualifying stablecoins” as the principal classes of cryptoassets to which the amendments apply
- Classify “qualifying cryptoassets” and “qualifying stablecoins” as specified investments under the Financial Services and Markets Act 2000 (“FSMA”)
- Specify certain activities involving these assets as regulated activities, requiring authorisation from the FCA
- Amend the FSMA to set the geographical perimeter of the regulation
- Make consequential amendments to the Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 to reflect the new regulatory perimeter
We will explore these changes in greater detail in future blogs.
Summary
The introduction of the new rules is expected to bring much greater certainty to both the regulatory and legal frameworks governing cryptoassets.
In the meantime, and especially given that the FCA has demonstrated a willingness to prosecute individuals who do not comply with the regulations, firms should continue to closely monitor the latest regulatory developments.
How Gherson can assist
Gherson’s white-collar crime and regulatory team are able to provide advice and assistance with AML, regulatory and sanctions compliance, including in situations involving cryptoassets.
Additionally, the team has recently started a series on the regulation of crypto, with the aim of advising those who work in the compliance of this sector. In addition, for those who would like advice on relevant issues, including those who have had issues with the FCA registration process, our specialist regulatory and compliance team can guide individuals and companies through the process.
Please do not hesitate to contact us for further advice, send us an e-mail, or, alternatively, follow us on Twitter, Facebook, or LinkedIn to stay up-to-date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
©Gherson 2025