UK crypto regulation – a new regime for cryptoasset regulation

As we have analysed previously, the UK crypto regulatory landscape has been in a state of flux for some time. Some stability, however, is finally on the horizon.

On 29 April 2025, the Chancellor introduced much-needed draft legislation for the regulation of cryptoassets. In December 2025, the Government laid The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 (FSMA) before Parliament. If approved, this will bring cryptoassets within the FCA’s regulatory remit.

Overview

Firms looking to launch cryptoassets – or products connected to cryptoassets – in the UK must continue to monitor the current UK regulatory landscape carefully.

This includes considering whether Financial Conduct Authority (“FCA”) authorisation is required by law, along with anti-money laundering (“AML”) regulations, data protection requirements, intellectual property issues and consumer advertising rules.

Current UK regulatory position and developments

Through a series of articles, Gherson’s White-Collar Crime and Regulatory Team have been tracking the latest developments in cryptoasset regulation, including:

• UK crypto regulation – what changes does the recent HM Treasury Consultation Paper suggest lie ahead for UK crypto regulation;
• UK crypto regulation – update in light of HM Treasury’s 30 October 2023 Response to their 1 February 2023 Consultation Paper;
• Non-fungible token (NFT) Regulation in the UK;
• Stablecoin regulation in the UK.

In our last update, we examined HM Treasury Consultations and the Government’s 30 October 2023 Response, which outlined detailed proposals for the creation of a financial services regulatory regime for cryptoassets, including stablecoins.

In November 2024, the Government confirmed that it would proceed with implementing these proposals largely unchanged.

In December 2025, as above, the Government laid The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 (FSMA) before Parliament. If approved, they will bring cryptoassets within the FCA’s regulatory remit.

The new cryptoasset regime – 25 October 2027

The new cryptoasset regime is expected to enter into force on 25 October 2027.

Firms undertaking newly regulated cryptoasset activities will need to be authorised under the FSMA, with permission to undertake such activities at the point the new regime commences.

To assist relevant firms, the FCA have published information on:

• Cryptoasset regulated activities: FSMA and the FCA Handbook[4]
• Cryptoassets: Our standards[5]
• Cryptoasset firms: Authorisation, supervision and enforcement[6]
• Cryptoassets: How the gateway will operate[7]
• Cryptoassets: The transitional provision[8]

Conclusion

The introduction of the new rules should bring much greater certainty to both the regulatory and legal landscapes for cryptoassets in the UK.

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 monitor developments and the current regulatory position.

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.

Please do not hesitate to contact us for further advice, send us an e-mail, or, alternatively, follow us on X, 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 2026