Is crypto legal in United Kingdom?

“Once the regime is in place, cryptoasset businesses will need to be authorised by us to do business in the UK and will need to demonstrate that they can meet the standards we set.”

“You must register with us if you want to provide cryptoasset services that come within scope of the money laundering regulations (MLRs).”

“firms issuing qualifying stablecoin ... will only be required to be authorised if they are carrying on the activity of issuing qualifying stablecoin from an establishment in the United Kingdom. The new cryptoasset regime is expected to come into force on 25 October 2027.”

“The CARF requires UK RCASPs to collect tax relevant information and undertake due diligence in relation to their users on an annual basis. Secondary legislation was introduced on 25 June 2025, and these regulations will come into force on 1 January 2026.”

“Decentralised finance (DeFi) – services offered on public blockchains without traditional intermediaries – could pose risks to financial stability if it grew and became interconnected with the traditional financial system. The regulatory framework will need to evolve in response.”

“Non-fungible tokens (NFTs) are a type of cryptoasset. The tax treatment of NFTs follows the same principles as other cryptoassets and depends on the nature and use of the token.”

“Individuals may acquire exchange tokens through mining… If the mining activity does not amount to a trade, the pound sterling value (at the time of receipt) of any tokens awarded will generally be taxable as miscellaneous income… If the mining activity does amount to a trade, the mining income will be included in the calculation of trading profits.”

“The FCA has taken a range of enforcement actions and interventions against firms carrying on cryptoasset activities without appropriate registration or authorisation.”