UK’s financial regulator to implement final crypto rules by 2026

The UK Prepares for Comprehensive Crypto Regulations by 2026

The UK government, led by Prime Minister Keir Starmer, is setting its sights on finalizing regulations for the cryptocurrency industry by 2026. The Financial Conduct Authority (FCA) has announced that discussions and consultations will commence this quarter, covering various aspects such as market abuse, trading platforms, lending, and stablecoins.

Consultation Roadmap and Legislative Timeline

The FCA has published a roadmap outlining the consultation process, with legislation expected to come into force in late 2026. The financial regulator has also released the results of a recent survey on cryptocurrency.

FCA's Focus and Consultation Breakdown

Matthew Long, the FCA's director of payments and digital assets, emphasized the importance of learning from global regulatory practices. Consultations have been divided into four groups, with the upcoming quarter focusing on admission, disclosures, and market abuse.

The FCA has highlighted the challenge of disclosure requirements for decentralized issuers. Crypto exchanges may be required to provide information to customers based on publicly available data.

Crypto Ownership and Awareness in the UK

According to a YouGov survey, 12% of UK adults now own cryptocurrency, a rise from 10% in 2022. The average value of crypto holdings has also increased. Notably, about a third of respondents believe they could lodge complaints with the FCA regarding crypto issues.

Impact of Advertising and Crypto Awareness

Advertising appears to have a limited impact on purchasing decisions. While 60% of those exposed to crypto ads reported being unaffected, only 2% who were not previously considering a purchase made one after seeing an ad. Among those already contemplating crypto, 10% made a purchase, while 9% were deterred by advertising.

Bitcoin remains the most recognized cryptocurrency, known to 78% of UK respondents. Ethereum and Dogecoin follow with 31% and 30% recognition, respectively.

UK's Position in the Global Regulatory Landscape

The UK aims to keep pace with financial centers like Hong Kong, Singapore, and the United Arab Emirates, which have already implemented crypto regulations. The European Union's comprehensive framework will also take effect later this year. With the recent reelection of crypto advocate Donald Trump in the United States, there is added pressure on the Starmer administration to expedite its efforts.