UK’s Crypto Legislation Expected by 2026, Insights from FCA Roadmap and Survey

UK's Crypto Legislation Projected for 2026: Insights from FCA Roadmap and Survey

Regulatory Updates

Despite initial expectations, the UK Labour government has prioritized innovation and deferred stablecoin-specific regulations. All cryptocurrency regulations will be implemented in a single phase, according to Treasury Secretary Tulip Siddiq.

FCA Roadmap

The Financial Conduct Authority (FCA) has outlined its roadmap for consultations, anticipating legislation by 2026. Consultations will be divided into four phases, with initial discussion papers released this quarter on topics such as market abuse.

Decentralized Issuer Transparency

The FCA highlights challenges in obtaining data from decentralized issuers. One proposed solution involves crypto exchanges providing information based on public data. This approach aims to encourage decentralized projects to provide accessible data, as they seek exchange listings and exchanges strive to minimize workload.

Investor Research Preferences

Despite FCA's plan, their survey indicates that exchanges rank fourth among investors' research sources. Online forums, friends and family, and social media are more popular.

Additional Consultation Topics

Remaining consultation papers will cover:

• Trading platforms, intermediation, staking
• Stablecoins, custody, risk management
• Conduct standards for regulated activities

Rising Crypto Ownership

A YouGov survey indicates an increase in UK crypto ownership, with 12% holding cryptocurrency in 2023 up from 10% in 2022. The average investment value has also risen.

Impact of Advertising

Advertising has mixed effects. While 60% report no influence, some have been prompted to invest or discouraged from it.

Crypto Awareness

Awareness of cryptocurrency has grown, with Bitcoin leading at 78%. Ethereum, Dogecoin, and other altcoins also show increased recognition.

Unregulated Landscape

Currently, crypto remains largely unregulated in the UK, and high-risk. Investors should be prepared for potential losses. The FCA emphasizes the need for clear regulations to foster a safe and competitive crypto sector.