U.K. Government to Regulate Bitcoin (BTC) Starting in 2026

The British government in the United Kingdom (U.K.) has announced plans to implement full regulations on Bitcoin (BTC) and other cryptocurrencies beginning in 2026.

Britain’s Financial Conduct Authority (FCA) has outlined a plan that includes consultations on crypto regulations ahead of “final rules” that will be implemented in a little more than a year’s time. The FCA also plans to regulate stablecoins starting in 2025. Stablecoins are cryptocurrencies whose underlying value is tied to another asset, typically the U.S. dollar.

The British government says that crypto regulations are needed now that 12% of adults in the U.K. own some form of digital assets. The plan to fully regulate cryptocurrencies stands in contrast to the U.S., where president-elect Donald Trump is expected to take a lax approach to regulating digital tokens. The price of BTC has risen more than 30% since Trump was re-elected on expectations for less regulation.

Tightening the Rules on Crypto

Currently, cryptocurrencies are unregulated in the U.K., making them a high-risk investment, according to the FCA. “Our research results highlight the need for clear regulation that supports a safe, competitive and sustainable crypto sector,” said the watchdog in announcing its upcoming rules.

The U.K. government has been debating crypto regulations for years. In 2023, the FCA tightened rules over the promotion and selling of crypto. However, until now, the British government has stopped short of proposing full market regulations pertaining to Bitcoin and other cryptocurrencies.

The price of Bitcoin has risen more than 130% this year.

Is BTC a Buy?

Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so instead we look at the cryptocurrency’s three-month performance. As one can see in the chart below, the price of BTC has risen 52% in the last 12 weeks, which is a strong showing.