UK’s 2027 crypto rules let firms remove trust protection from Bitcoin lent for yield

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The UK’s planned 2027 crypto framework would allow firms to structure Bitcoin lending for yield without holding the assets in trust for customers. This could expose lenders to greater counterparty and insolvency risk if a platform fails, effectively treating lent Bitcoin more like an unsecured claim. The change may support institutional lending and yield products but could reduce consumer protections and increase systemic risk in the UK’s digital-asset market.

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