The FCA, a British financial authority, released statements and a roadmap for finalizing comprehensive crypto regulations by 2026. The FCA’s operations in this sector will significantly increase in the first half of 2025.
The FCA acknowledged the rising popularity of the crypto industry in Britain, but its track record of previous regulations has earned widespread scorn.
FCA Crypto Regulation Plans
In a pair of announcements on its official blog, the British Financial Conduct Authority (FCA) is preparing to finalize crypto regulation in the UK. This UK government regulator plans to finish its ruleset for the industry by Q1 2026. Focus areas include market abuse, trading platforms, lending, and stablecoins.
However, the FCA’s existing regulatory policies have already ruffled feathers in the industry. Last August, a survey of British crypto firms revealed increasing skepticism to the FCA’s approach. Before his appointment to the position, FCA Chair Ashley Alder attacked the crypto sector, and he’s still employed in the role.
Nonetheless, the regulator has acknowledged the industry’s rising popularity. It claimed that 12% of British adults now own digital assets, and this number is growing.
In the most recent Parliamentary election, the less industry-friendly candidate won. The Labour Party has been known for its negative stance toward crypto and favoritism towards open banking.
Nonetheless, the shift in the US regulatory scene following Trump’s re-election seems to have influenced the UK’s decision to re-think its policies.
“Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK. We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust,” claimed Matthew Long, director of payments and digital assets at the FCA.
In other words, these regulations offer several hopeful possibilities for users and businesses in the region. The FCA claimed that it consulted over 100 crypto organizations, including exchanges, blockchain analytics firms, and other advocates.
A 2023 survey showed that 85% of exchanges fail current FCA standards. The regulator may need to loosen them if it wants the British crypto sector to be competitive.
However, there are plenty of bearish signals that can’t be disregarded. In addition to these industry professionals, the FCA also consulted various regulators, including the US SEC. Matthew Long gave an interview with Bloomberg concerning these regulations today, and his statements directly reflect a pessimistic outlook:
“There are no protections for investing in crypto. So, unfortunately, our message is ‘be prepared to lose all your money,’ Long claimed.
Overall, crypto regulations are still a grey area in the UK. The FCA previously introduced strict rules against crypto advertising in the country. This led to many major exchanges, such as Binance, significantly reducing their operations in the country.
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