The UK government will introduce new crypto legislation to Parliament on Monday, aiming to extend existing financial regulation to digital asset activities and bring crypto exchanges and stablecoin issuers under formal oversight. Under the draft bill, operating a crypto exchange and issuing stablecoins will become regulated activities requiring firms to register with the Financial Conduct Authority (FCA). The framework, slated to take effect from October 2027, aligns the UK more closely with the U.S. model and aims to boost investor protection, market integrity and innovation while reducing fraud and systemic risk. Stablecoin rules will also dovetail with Bank of England proposals on backing and liquidity requirements.