"England is integrating into the financial system with crypto regulations."

The UK government is taking significant steps towards integrating the cryptocurrency sector with existing financial regulations. A new law set to come into effect by October 2027 is planned to be presented to Parliament this week. According to Treasury officials, the draft is largely consistent with the draft published in April and will establish definitive rules for cryptocurrency exchanges and stablecoin issuers.

This new approach towards crypto in the UK differs from the European Union's MiCA (Markets in Crypto-Assets) regulation. The London administration prefers to examine the crypto sector within the existing financial services legislation rather than through a separate regime. This means that it is similar to the model employed in the United States.

In particular, the regulation of stablecoins stands out as a significant aspect. The Bank of England presented a proposal for a separate supervisory and oversight regime for stablecoins last month. This proposal was opened for input from sector representatives through a consultation process that will last until February 2026.

UK Finance Minister Rachel Reeves stated that the new regulations would bring "clear rules of the game" to the crypto market and expressed the aim of excluding suspicious and malicious actors from the system. It is believed that this step will enable the UK to achieve a more significant position in the global crypto regulation landscape.

For investors, these developments mean a reduction in uncertainties in the cryptocurrency market. The outcome of the UK’s regulatory process could lead to significant changes in cryptocurrency exchanges and stablecoin projects. Therefore, it is recommended that investors closely monitor the process and pay attention to market dynamics.