There are new developments in the UK's cryptocurrency regulation progress. The UK Treasury submitted a draft bill to Parliament in December last year, explicitly proposing to include crypto assets into the formal financial regulatory system by October 2027.

Specifically, what areas will this reform cover? Trading platform operations, asset custody, staking services, lending products—these core activities will all be brought into the licensing system. The FCA( Financial Conduct Authority) has released three consultation documents requiring these institutions to adhere to standards similar to traditional financial institutions: transparent governance structures, detailed information disclosure, measures to prevent market manipulation, and prudent capital adequacy requirements.

Interestingly, the government has also simultaneously initiated an independent review of foreign capital interference, with a particular focus on political financing risks including crypto donations. This report is expected to be released in March 2026. It seems that while the UK is developing its crypto framework, it is also carefully considering geopolitical risks.