The UK’s Financial Conduct Authority (FCA) has announced plans to establish a comprehensive cryptocurrency regulatory framework by 2026.
The initiative, aimed at catching up with global leaders in crypto regulation, will begin with consultations and discussion papers on key topics such as market abuse, stablecoins, staking, crypto lending, and trading platforms, starting in late 2024.
This strategic move comes as the UK seeks to position itself as a competitive financial hub in the digital asset sector alongside global leaders like Hong Kong, Singapore, the UAE, and the European Union.
The EU’s Markets in Crypto Assets (MiCA) regulations, set to take full effect by the end of 2024, have further highlighted the need for the UK to accelerate its efforts to remain globally relevant.
The FCA’s regulatory priorities will focus on fiat-pegged stablecoins, staking services, custodial wallets, and related crypto services. The goal is to create a transparent framework that balances investor protection with fostering innovation. This approach is seen as essential for attracting digital asset businesses and maintaining the UK’s competitiveness in the rapidly evolving crypto industry.
Recent data shows crypto ownership in the UK has grown by 4% over the past two years, with approximately 7 million adults now holding digital assets. This increasing adoption has underscored the importance of clear regulations to safeguard consumers and encourage sustainable growth in the sector.
The pro-crypto stance of Donald Trump’s administration in the US, which has hinted at policies like establishing a strategic Bitcoin reserve, has added urgency to the UK’s efforts.
With global shifts toward crypto-friendly policies, the FCA is under pressure to develop a regulatory framework that keeps pace with international standards. The collaboration will play a central role in the FCA’s roadmap. The regulator has pledged to work closely with the government, industry players, international partners, and consumers to shape effective policies.
Economic Secretary Tulip Sidiq, under the Keir Starmer government, has also committed to delivering draft crypto regulations, marking the administration’s first major step toward crypto policy reform.
The FCA plans to release position papers on key issues by early 2025, with final policies expected by 2026. This initiative reflects the UK’s determination to emerge as a global leader in crypto regulation while ensuring investor protection and promoting innovation.
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