U.K. Sets 2026 Target for Comprehensive Crypto Regulation

The U.K.’s Financial Conduct Authority (FCA) has unveiled an ambitious plan to implement a comprehensive regulatory framework for the cryptocurrency industry by 2026. Announced on Tuesday, the roadmap outlines critical milestones that will shape the regulation of digital assets in Britain.

Starting this quarter, the FCA plans to issue discussion papers focusing on stablecoin issuance and custody, market abuse prevention, and rules for admission and disclosure. These consultations will pave the way for a detailed review of critical crypto-related activities.

In the first half of 2025, the regulator aims to expand its scope to include policies addressing trading platforms, intermediaries, crypto lending, prudential exposure, and staking rewards offered by firms for token holdings. These developments will culminate in the release of final policy statements and the activation of the full crypto regulatory regime by 2026.

The move comes as crypto adoption in the U.K. continues to grow. According to FCA research, the average value of cryptocurrency holdings among U.K. residents increased from £1,595 in 2022 to £1,842 as of August 2023.

However, the research highlights lingering misconceptions about regulatory oversight. A third of respondents mistakenly believe they could seek financial protection or file complaints with the FCA if they encounter issues in the crypto market.

The FCA’s initiative reflects a proactive stance toward fostering innovation while addressing risks in the rapidly evolving digital asset space.