U.K. FCA will finalize crypto industry regulations in 2026: report

The UK Financial Conduct Authority plans to finalize regulations for the crypto industry by 2026, following input from bodies such as the Treasury, the Bank of England and the US Securities and Exchange Commission.

The FCA is developing rules to address market abuse and regulate trading platforms, lending and stablecoins, according to a Nov. 26 report from Bloomberg.

The regulator plans to begin consultations and discussions by the end of 2024 in a bid to prevent the UK from falling behind other countries such as the US and Hong Kong.

“We’ve had a lot of good discussions with the industry recently about how we can learn from regulations around the world,” Matthew Long, the FCA’s Director of Payments and Digital Assets, said in an interview on Bloomberg TV.

A blog post on the FCA website detailed that feedback was collected from more than 100 organizations spanning the crypto industry and traditional financial sectors.

These include crypto exchanges, banks, trading firms, blockchain analysis companies and regulatory bodies such as the Treasury, Bank of England and SEC.

The SEC has faced criticism for its tough stance on crypto. During SEC Chairman Gary Gensler’s tenure, the SEC has taken a record 46 enforcement actions against crypto-related entities in 2023 alone, including major crypto firms such as Binance and Bittrex.

In the FCA blog post, Long stated that guarding against market abuse lies “at the heart of ensuring financial markets operate efficiently and investors can make informed decisions,” expressing a desire to understand how this manifests itself in the crypto market and how to properly combat it. through the regulatory framework.

But he also emphasized the need to create a fair, orderly and transparent ecosystem for crypto traders and other players in the industry. Long said there is still a lot of work to be done, but they are making progress through regular discussions and roundtables with the Treasury and crypto industry players.

“Ultimately, we want our regime to take into account the unique characteristics of crypto and serve the best interests of the customer,” Long said.

The FCA’s data shows that at least 12% of the adult population in the UK owns crypto, up 10% on previous findings. Crypto awareness in Great Britain also increased from 91% to 93%, underlining the increase in adoption.

“Our research results underline the need for clear regulation that supports a safe, competitive and sustainable crypto sector in the UK,” Long said.