UK Financial Conduct Authority Plans New Crypto Authorization Regime by 2026
The U.K. crypto industry faces a tighter regulatory framework set to launch in 2026, according to Matthew Long from the Financial Conduct Authority (FCA).
- A new authorization regime will replace the current anti-money laundering (AML) framework.
- Crypto firms, including exchanges like Coinbase, must secure FCA approval under the new system.
- The FCA will publish documents on stablecoins, trading platforms, and staking this year.
- Since 2020, only 50 of 368 AML applications have been approved, indicating potential challenges for existing firms.
Upcoming legislation will clarify which activities require regulation, including:
- Issuance of crypto and fiat-referenced stablecoins
- Payment, exchange, and lending operations
Stablecoins will not fall under previous U.K. payments regulations. The FCA aims to draft specific stablecoin rules early this year. Companies already registered may need to undergo additional processes for new authorizations.
Long emphasized learning from European regulations to adapt best practices for the U.K. sector.