The UK Financial Conduct Authority (FCA) has announced plans to finalize its comprehensive crypto regulations by 2026, aligning itself with the evolving global regulatory landscape.
The move aims to address key areas such as trading platforms, crypto lending, and stablecoins, signaling a more structured approach to the sector. The announcement comes amid mounting pressure on the Keir Starmer government to establish clear crypto policies, particularly following Donald Trump’s victory in the 2024 US presidential elections, which is expected to reshape international crypto regulation.
In an official statement on November 26, the FCA revealed its intent to initiate consultations through discussion papers, setting the groundwork for robust regulatory frameworks. Matthew Long, the FCA’s director of payments and digital assets, emphasized the importance of learning from global examples and collaborating with the industry to ensure effective regulations. This consultative process will explore multiple aspects of the crypto ecosystem, including market abuse and emerging innovations in the digital assets sector.
The global context further underlines the urgency of this effort. Donald Trump’s administration is poised to introduce crypto-friendly policies in the US, potentially including the establishment of a strategic Bitcoin reserve. Reports suggest that Ripple CEO Brad Garlinghouse is a frontrunner for a potential crypto czar position at the White House. These developments heighten the competitive pressure on the UK to foster a regulatory environment conducive to innovation.
The UK’s delayed progress on crypto rules has left it trailing behind jurisdictions like Hong Kong, Singapore, and the UAE, which have already implemented advanced frameworks. The European Union’s Market in Crypto Assets (MiCA) regulation is also set to take effect by the year’s end, further accentuating the need for the UK to act swiftly. Proposed legislation from the FCA and the UK Treasury reportedly includes exemptions for staking and custodial wallets, aiming to position the UK as an attractive hub for digital asset businesses.
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