The Financial Conduct Authority, the UK's primary financial regulator, has announced plans to establish a comprehensive crypto regulatory framework by 2026, in response to the growing adoption of cryptocurrencies in the country. A recently released roadmap outlines the regulator's intention to publish discussion papers on key topics such as market abuse and disclosure requirements by the end of the year. Further papers on stablecoins, trading platforms, staking, and lending are expected to be released in early 2024.
The new framework is slated to come into effect after the final policy statements are published in 2026. According to a study commissioned by the FCA, crypto asset ownership in the UK has increased by 4% over the past two years, with approximately 7 million adults now holding crypto assets out of a population of around 68 million. The roadmap follows a recent speech by Economic Secretary Tulip Siddiq, in which she pledged to introduce draft regulations for cryptocurrencies, stablecoins, and staking by early next year.
This marked the first indication from the newly elected Labour government of its approach to regulating the crypto industry. The FCA's roadmap is designed to promote transparency and garner support from industry stakeholders. 'We are committed to collaborating closely with the government, international partners, industry leaders, and consumers to develop effective future regulations,' stated Matthew Long, director of payments and digital assets at the FCA. The UK's crypto framework is expected to follow the European Union's Markets in Crypto Assets (MiCA) regulations, a comprehensive set of rules for crypto assets scheduled to take effect by the end of the year.