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FCA sets 2026 deadline to finalize UK crypto rules

  • The UK Financial Conduct Authority (FCA) plans to finalize crypto regulations by 2026, targeting market abuse, trading platforms, lending and stablecoins.
  • Input from over 100 organizations, including crypto exchanges, banks and regulators, is shaping FCA's framework to align with global standards.
  • Crypto adoption in the UK is on the rise, with FCA reports showing a 12% ownership rate among adults and increasing public awareness.

The United Kingdom's (UK) Financial Conduct Authority (FCA) plans to strengthen its cryptocurrency regulations by 2026, using insights from key bodies like the Treasury, the Bank of England and the United States (US) Securities and Exchange Commission (SEC).

Bloomberg's report on Tuesday details the FCA's strategy to enforce rules against market abuse and regulate trading platforms, lending services and stablecoins within the crypto ecosystem.

Crypto ownership in UK surges

The FCA plans to start consultations and discussions by late 2024 to ensure the UK remains competitive with global players like the US and Hong Kong in the changing cryptocurrency landscape.

A blog post on the FCA’s website stated that feedback from over 100 cryptocurrency and traditional finance organizations has been collected. Contributors include crypto exchanges, banks, trading firms, blockchain analytics companies and key regulatory bodies like the Treasury, the Bank of England and the SEC.

The SEC has faced criticism for its strict approach to the crypto market. In 2023, SEC Chairman Gary Gensler led the agency to initiate 46 enforcement actions against crypto entities, including major firms like Binance and Bittrex.

In the FCA blog post, Mark Long, Executive Director, highlighted the importance of stopping market abuse because it is necessary for financial markets to work well and for investors to make smart choices. He stressed how important it is to understand market abuse in the crypto business and put in place strong rules to stop it.

According to data from the FCA, 12% of UK adults now own cryptocurrency, 10% more than the previous number. The number of people in UK who know about crypto has increased from 91% to 93%, showing that adoption is steadily growing.

Author

Reza Ali

Reza Ali

FXStreet

Reza Ali is a seasoned crypto-journalist and analyst with over four years of dedicated experience in the crypto and fintech space. He holds a bachelor’s degree in business administration.

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