UK Crypto Regulation Enters New Phase
The UK Financial Conduct Authority (FCA) recently announced it has entered the final consultation phase for regulating the crypto asset industry. The consultation period will last until March 12, 2026, focusing on how the "Consumer Duty" principle should apply to crypto-related businesses.
Clear Timeline for License Applications
The FCA stated that it plans to open the licensing process for crypto asset operations in September 2026. All crypto service providers, including those already registered under anti-money laundering regulations, must obtain formal authorization by October 2027.
Enhanced Consumer Protection
Under the proposed rules, crypto firms must operate in good faith, avoid foreseeable harm to users, and ensure transparency in disclosures, pricing, and customer support to maintain positive consumer outcomes.
Balancing Regulation and Innovation
The FCA emphasized that the goal of this regulatory push is to establish clear industry standards and protect investors. However, it also clarified that the purpose is not to eliminate the inherent risks of digital asset investments, aiming to foster innovation while ensuring market integrity.