The post UK FCA to Reshape Crypto Regulations with New Authorization Process appeared on BitcoinEthereumNews.com.

The Financial Conduct Authority plans to introduce a crypto market framework in 2026 covering stablecoins, trading platforms, staking, and prudential exposure. According to Matthew Long, the regulatory regime is expected to introduce a new authorization process for crypto companies. The United Kingdom’s Financial Conduct Authority (FCA) is set to introduce a comprehensive regulatory framework for crypto assets, aiming for full implementation by 2026. This initiative seeks to balance consumer protection with the growth of the crypto market. Historically, the FCA’s involvement in the crypto sector was primarily focused on anti-money laundering (AML) measures and financial promotions. However, the forthcoming regulatory framework will significantly expand the FCA’s authority to cover a broader range of crypto activities, including crypto trading, stablecoins, intermediation, and custody services. As a result, companies such as Coinbase, Gemini, and Bitpanda will need to undergo a new approval process with the FCA rather than simply registering for AML compliance. Matthew Long, FCA Director of Payments and Digital Assets, stated during an interview with Coindesk, We will have a gateway which will allow authorization. But obviously, we’ve got to go through those consultations, create those rules, and get the legislation for that to take place, Since launching its anti-money laundering (AML) register in 2020, the FCA has received 368 applications from companies seeking compliance; however, only 50 firms (14%) have been approved so far. The remaining applications were either withdrawn, rejected, or are still under review. Due to the FCA’s stringent requirements, many crypto firms struggle to gain registration, forcing some to shut down their UK operations or relocate to other jurisdictions. Expansion of FCA’s Role In 2023, the former UK government published policy papers indicating that regulated activities in the crypto sector would likely include crypto and fiat-referenced stablecoin issuance, payment and exchange services, and crypto lending activities.…

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Filed under: News - @ March 30, 2025 8:10 am