The United Kingdom (UK) plans to implement a comprehensive regulatory framework for cryptocurrency by 2026, signaling a major step toward promoting transparency and consumer protection in the sector.
A Bloomberg report noted that a range of discussion documents and consultations will commence as early as this quarter to draft regulations addressing market manipulation, trading platforms, crypto lending, and stablecoins, among other topics.
FCA to Implement Crypto Regulations
A blog post on the Financial Conduct Authority (FCA) website also revealed that input from more than 100 entities spanning the crypto and traditional finance sectors has been gathered. Participants include digital asset platforms, financial institutions, trading companies, blockchain analytics providers, and major regulatory organizations such as the Treasury, the Bank of England, and the United States Securities and Exchange Commission (SEC).
Following the FCA report, Mark Long, Executive Director, emphasized the critical need to prevent market manipulation, stating that it is essential for the proper functioning of financial markets and enabling investors to make informed decisions. He further noted the significance of addressing market misconduct within the crypto sector and implementing robust regulations to curb such activities.
Data from the FCA also noted that 12% of adults in the UK currently hold crypto assets, which marks a 10% rise from the previous figure. Awareness of digital assets among the population has also grown, increasing from 91% to 93%, indicating a steady expansion in adoption.
Research indicates that more people view crypto as a component of a diversified investment strategy. Around 20% of respondents identified recommendations from friends and family as a key motivation for buying crypto.
Additionally, long-term savings for crypto investments grew from 19% in 2022 to 26% in 2024, while purchases made using credit cards or overdrafts climbed from 6% to 14% during the same timeframe.
SEC Targeting Big Players
Over the years, the SEC has drawn criticism for its rigorous stance on the crypto industry. In 2023, under the leadership of Chairman Gary Gensler, the agency pursued 46 legal actions against crypto companies, targeting prominent players such as Binance, Coinbase, and Bittrex.
As a result of several legal actions, crypto exchange crypto.com joined forces with other companies to actively defend themselves, take a stand against a federal agency overstepping its legal authority, and protect the future of the crypto industry in the U.S.
The firm noted in its lawsuit that the SEC had overstepped its statutory boundaries by unilaterally expanding its jurisdiction. Additionally, it questions the regulator’s unlawful rule that treats nearly all crypto assets as securities, regardless of how they are conducted.
