The UK's Big Move: Crypto Gets the Same Rules as Banks
Bold Move to Integrate Crypto into Financial Services Perimeter
By October 2027, crypto will be fully integrated into the UK's financial services perimeter. Crypto firms will have to follow the same strict rules as banks and other financial institutions.
FCA Leading the Charge
The Financial Conduct Authority (FCA) is spearheading this initiative. They've launched consultations to set new standards for crypto firms. These consultations will define the legal operating requirements for crypto firms, with final rules expected by 2026.
Stricter Requirements
This marks a significant shift from previous regulations. Previously, crypto firms only had to comply with basic anti-money laundering rules. Now, they will face stricter requirements, including:
- Consumer protection
- Capital requirements
- Market oversight
Government's Policy Roadmap
The UK government has outlined a new policy roadmap for crypto, focusing on:
- Trading
- Dealing
- Custody services
The aim is to foster innovation while protecting consumers and preventing exploitation.
FCA's Consultation Papers
The FCA has published three consultation papers outlining proposed rules for crypto activities. These papers cover:
- Operational requirements for trading platforms
- Transparency for token issuers
- Prudential requirements for firms
The outcome of these consultations will determine the final rules that crypto firms must follow.
Political Donations and Foreign Financial Interference
The UK government is also reviewing the use of crypto in political donations. They've launched a review into foreign financial interference, which could lead to new restrictions on crypto donations. This review is expected to report by March 2026.
