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

The UK is set to finalize its crypto industry regulations in 2026 as Keir Starmer’s government aims to close the gap with leading financial hubs. On Tuesday, the Financial Conduct Authority (FCA) announced that a series of discussion papers and consultations will kick off this quarter. 

These initiatives will shape regulations on key areas such as market abuse, trading platforms, lending, and stablecoins. 

The UK’s FCA published a consultations roadmap that points to legislation coming into force in 2026, probably late that year. The financial regulator also published the results of a recent crypto survey.

Matthew Long, the FCA’s director of payments and digital assets commented on the development:

We’ve had many, many good conversations recently with industry about how we’re going to learn from regulation around the world.

~Matthew Long

FCA splits consultations and highlights disclosure challenges

Despite a unified go-live target, the consultations have been divided into four groups. This quarter, we can expect discussion papers on admission, disclosures, and market abuse, with a formal consultation scheduled for Q3 of next year.

In a recent blog post, the FCA highlighted the challenge of how decentralized issuers will be expected to disclose their data. It seems likely that crypto exchanges will be required to provide relevant information to their customers based on publicly available data—a reasonable approach. Since tokens will seek exchange listings and exchanges typically aim to minimize their workload, decentralized projects will likely ensure that sufficient data is made accessible.

However, a recent crypto survey revealed that exchanges are only the fourth most important source of research for users. Online forums lead the list, followed by friends, family, and social media recommendations.

Meanwhile, the other three sets of discussion and consultation papers will address trading platforms, intermediation, lending, staking, and prudential exposures; stablecoins, custody, and prudential requirements (including capital, liquidity, and risk management); and conduct and firm standards for regulated activities.

UK crypto ownership rises, ads have limited impact, survey shows

A recent YouGov survey revealed that 12% of UK adults now own cryptocurrency, up from 10% in 2022. The average value of crypto holdings among investors also grew, rising from £1,595 to £1,842. Interestingly, about a third of respondents believe they could file a complaint with the FCA if issues arise, despite the unregulated nature of cryptocurrencies.

Advertising appears to have a limited impact. While 60% of those exposed to crypto ads reported being unaffected, only 2% of people who hadn’t previously considered purchasing crypto decided to buy after seeing an ad. Among those already considering it, 10% went on to make a purchase, while 9% said advertising deterred them.

Bitcoin remains the most recognized cryptocurrency, known to 78% of respondents in UK. Ethereum and Dogecoin follow with 31% and 30% recognition, respectively. Awareness drops sharply for other cryptocurrencies, with Solana recognized by 11% and TRON by 10%. Ethereum and Dogecoin are almost as well-known as Bitcoin when focusing exclusively on current crypto holders.

The UK is working to catch up after financial centers like Hong Kong, Singapore, and the United Arab Emirates adopted crypto regulations in the past few years. Meanwhile, the European Union’s comprehensive framework will come into full effect by the end of the year, and the U.S., under newly re-elected crypto advocate Donald Trump, adds further urgency for Starmer’s administration to accelerate its efforts.

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