The new Labour government in the UK is shifting the focus of crypto regulation to promote innovation, postponing stablecoin legislation. The Financial Conduct Authority (FCA) plans comprehensive regulations with a target for late 2026, promoting a phased consultation approach. A recent YouGov survey indicates growing interest in crypto among the UK population, though awareness of major cryptocurrencies varies significantly.
The UK, under the guidance of the new Labour government, is reassessing the urgency of crypto regulation, notably delaying the stablecoin legislation initially planned by the previous Conservative government. Economic Secretary Tulip Siddiq indicated that the Labour administration aims to foster innovation, which affects the timeline set for crypto regulations. The Financial Conduct Authority (FCA) has announced that comprehensive regulations will be developed, with an implementation target set for late 2026.
The FCA’s roadmap outlines a single-phase approach for regulatory consultation, divided into four thematic groups to ensure thorough discussion. Initial papers focusing on admission, disclosures, and market abuse will be published shortly, followed by further consultations in the third quarter of 2024. The challenge of ensuring decentralized issuers provide necessary data disclosures has been highlighted, and it is likely that exchanges will have to rely on publicly available data for their communications with customers.
Interestingly, research showed that crypto exchanges are not the primary source of information for investors. Instead, online forums rank highest, followed by advice from friends and family, and social media influence. The FCA’s consultation will also cover key topics such as trading platforms, lending, stablecoins, and standards for regulated activities.
According to a recent YouGov survey, crypto ownership among UK adults has risen to 12%, with average holdings increasing from £1,595 to £1,842. Despite half feeling unprotected due to the lack of regulations, around a third incorrectly assume they can lodge complaints with the FCA.
Advertising regarding cryptocurrencies has proven only moderately effective, with 60% of viewers reporting no influence on their purchase decisions; 2% of non-previously interested viewers made a purchase post-ad viewing. Recognition of major cryptocurrencies shows Bitcoin leading at 78%, followed by Ethereum at 31% and Dogecoin at 30%. However, awareness drops significantly for other cryptocurrencies.
