Financial Regulatory Body in UK Proposes Discussion on Cryptocurrency Standards Prior to Implementation of Legislation in 2026
The UK's Financial Conduct Authority (FCA) has launched a consultation on proposals for minimum standards for cryptocurrency firms, aiming to develop a sustainable and competitive crypto sector. The announcement was made on September 17, 2025, by David Geale, the FCA's Executive Director of Payments and Digital Finance.
The proposals aim to promote sound business practices, mirroring many requirements already applied to traditional financial firms. Crypto firms may face lighter requirements around senior managers and technology outsourcing, but stricter standards around risks unique to the sector, including cyber attacks, will be enforced.
The measures include operational resilience, systems and controls to combat financial crime, and rules on handling customer complaints. The UK's approach to crypto regulation has been criticized by the industry as too restrictive in some areas, with the Bank of England's proposed stablecoin ownership cap being one of the points of contention. This cap would limit individual holdings to £10,000-£20,000 and business holdings to £10 million to prevent outflows from traditional bank deposits.
London has lost ground to jurisdictions such as Dubai, Singapore, and the U.S., which have brought in comprehensive crypto frameworks ahead of the UK. However, Geale stated that the proposals won't remove the risks of investing in crypto, but they will help firms meet common standards so consumers have a better idea of what to expect.
Once enacted, the rules will expand the FCA's remit to include stablecoin issuance, custody of cryptoassets, trading platform operations, and staking. The UK's Treasury has drafted a Statutory Instrument in April, outlining plans to bring crypto under the Financial Services and Markets Act. Proportional rules are being considered to reflect crypto's smaller systemic footprint compared to banks.
The consultation on these proposals is part of a wider UK push to regulate cryptoassets from 2026. For more information, please visit: https://t.co/jqGURcsprw
It's important to note that while the UK's regulatory moves may face criticism from some within the industry, they are part of a broader effort to ensure the safety and stability of the crypto sector for consumers and businesses alike. As the industry continues to evolve, it's likely that regulations will adapt and change to reflect the needs of this growing market.
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