The UK FCA plans to introduce cryptocurrency regulations by 2026 due to rising digital asset ownership, now at 12% among adults. The approach includes transparent consultations to encourage public involvement. Despite increasing awareness, current regulations remain insufficiently protective, posing risks for investors. Industry hopes for clearer guidelines under the new U.S. administration add a new dimension to the ongoing regulatory discourse.
The Financial Conduct Authority (FCA) of the United Kingdom has announced plans to establish a cryptocurrency regulation framework, aiming for completion by 2026. This initiative responds to the growing ownership of digital assets, with current statistics showing that 12% of U.K. adults now own cryptocurrency, an increase from 10% previously. The FCA’s roadmap includes a series of focused consultations to enhance transparency and public participation in policy development.
FCA’s director of payments and digital assets, Matthew Long, emphasised the need for regulation that fosters a secure, competitive, and sustainable crypto sector. He noted the importance of developing a framework that encourages innovation while ensuring market integrity and consumer trust. Collaboration with the government, international partners, and stakeholders is central to shaping effective future regulations.
Despite the growth in crypto ownership, the FCA warns that the current regulatory landscape remains largely unregulated and poses significant risks to investors. Many individuals are unprepared for potential losses, with one-third believing they can seek redress from the FCA in case of issues.
In parallel, crypto industry participants are optimistic about forthcoming regulations under the new U.S. administration, led by President-elect Donald Trump, who plans to establish a presidential advisory commission to clarify crypto regulations. This follows a period of complaints regarding the SEC’s approach to cryptocurrency enforcement.
Financial institutions, including Visa, are eager to advance their involvement with tokenized assets but highlight the necessity for definite regulatory guidelines. The regulatory status of cryptocurrencies and digital assets, such as stablecoins, is still a subject of extensive debate, with significant implications for their classification as securities or banking instruments.
