The UK’s financial regulator, the Financial Conduct Authority (FCA), plans to introduce a detailed crypto regulation framework by 2026, as the crypto market surge highlights the need to address the growing adoption of cryptocurrencies in the country. In its recently published roadmap, the FCA aims to release discussion papers on key topics, including market abuse, disclosures, and stablecoins by the end of this year.

By early 2025, the FCA will also address critical areas like trading platforms, staking, prudential crypto exposure, and lending. The final policy statements, expected in 2026, will establish the official launch of the crypto regime. A recent FCA study revealed a 4% increase in crypto asset ownership over the past two years, with approximately 7 million adults (about 10% of the UK population) now holding cryptocurrencies.

The surge in crypto asset prices after pro-crypto Republican Trump’s election victory was seen as a signal of more favorable and relaxed policies for the crypto industry. As a result, the UK government is moving to advance cryptocurrency regulation to prevent UK startups from being lured towards other jurisdictions, particularly the US.

The prospective roadmap follows a speech by Economic Secretary Tulip Siddiq, who promised draft regulations on cryptocurrencies, stablecoins, and staking by early 2025. This marks the first concrete step by the newly elected Labour government to address the growing crypto sector. The FCA’s roadmap aims to ensure transparency and incorporate suggestions from industry stakeholders.

Matthew Long, the FCA’s director of payments and digital assets, highlighted the importance of collaboration, saying, “We’re committed to working closely with the Government, international partners, industry, and consumers to ensure we get the future rules right.” The UK’s crypto regulatory framework will be implemented following the European Union’s Markets in Crypto Assets (MiCA) regulations, which are set to take effect by the end of this year and will establish a comprehensive set of rules for the crypto industry.

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