Recent regulatory developments to shake up cryptocurrency landscape
A new era of clarity and control is on the horizon for crypto assets. We look at the legal updates to UK cryptocurrency regulation and what it means for the sector.
Draft legislation published – FSMA 2000 (Cryptoassets) Order 2025
On 29 April 2025, HM Treasury published draft legislation under the Financial Services and Markets Act 2000 to formally bring cryptoassets into the UK’s regulatory scope. The approach will require crypto firms to play by many of the same rules as traditional banks, rather than introducing a standalone crypto regime. The draft legislation introduces:
- new regulated activities including the operation of crypto trading platforms and issuing stablecoins; and
- standards for crypto firms to abide by such as transparency, as well as consumer and wider market protections.
FCA consultation papers and roadmap, and the recent ETP headline
The Financial Conduct Authority (FCA) has followed suit and launched consultation papers which dig into how stablecoins should be issued, how crypto assets are held, and what kind of financial buffers companies need. More broadly the FCA has put forward their “Crypto Roadmap” outlining a phased approach, with most changes due to come into effect in 2026.
Following the FCA’s decision to lift its ban on certain bitcoin-based exchange-traded products (ETP’s), BlackRock is set to launch its ETP in the UK. the product, which is structured as a Bitcoin-linked security, will allow investors to buy fractions of Bitcoin through units starting at about £8.20 each. The launch reflects the growing regulatory openness in the UK which is to be overseen by the FCA.
Property (Digital Assets etc) Bill
Alongside the aforementioned reforms, the Property (Digital Assets etc) Bill is currently sitting in Parliament and is designed to clarify the legal status of digital assets—such as crypto-tokens and NFTs—under English law.
Traditionally, English property law recognises two categories of personal property:
- things in possession (tangible and possessable); and
- things in action (intangible rights enforceable by legal action).
The Bill seeks to introduce a third category of personal property for digital assets, classifying such assets as property under the law. This statutory recognition importantly enables greater legal protection for crypto owners.
Conclusion
The UK’s recent regulatory updates mark a pivotal moment for its crypto sector. By allowing for innovation alongside stringent regulation the UK will have the foundations of a safer, more competitive digital asset market. With the FCA’s roadmap taking shape and new laws on the horizon, it’s more important than ever for lawyers and crypto businesses to keep their finger on the pulse. The world of digital assets is changing quickly, bringing plenty of exciting opportunities—alongside greater responsibilities.
This blog has been co-written by Matthew Bartlett, Rhian Davies and Kath Shimmin.
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