The UK plans to significantly overhaul its cryptocurrency regulations by 2026. This reform will cover stablecoins, lending, exchanges, and aims to regulate a broader range of crypto-related activities. Until now, the Financial Conduct Authority (FCA) has mainly focused on anti-money laundering efforts, but going forward, it intends to strengthen oversight across the entire crypto sector.
This article will explore the new direction of the UK’s crypto regulations, strategies businesses are adopting to prepare, and the current state of the cryptocurrency industry in the UK.
How Are UK Crypto Regulations Changing?
The UK is planning to implement broad cryptocurrency regulations. It has officially announced that policy documents related to stablecoins, trading platforms, and staking will be released within this year, with final regulations expected to be published by next year. These efforts aim to build a safe, competitive, and sustainable crypto ecosystem.
Notably, starting in 2026, a new licensing regime is expected to be introduced for crypto businesses. In this case, exchanges such as Coinbase and Gemini would need to reapply for approval from the UK’s Financial Conduct Authority (FCA).
The UK’s regulatory measures may also impact meme coins like Dogecoin, which gained popularity online due to viral trends. As a result, various projects that could influence the rankings of meme coins may fall under regulatory scrutiny. This shift is expected to bring clearer direction to the crypto industry as a whole.
Since 2020, crypto companies in the UK have been required to register for anti-money laundering (AML) compliance. However, the approval rate has not been particularly high. Under the new regulations, even previously registered companies will need to undergo certification again, drawing significant attention to how things will unfold. Meanwhile, there is ongoing discussion within the industry about whether the regulations will be based on company incorporation in the UK or focused on the user base.
The recent announcement by the UK’s Financial Conduct Authority (FCA) is part of a broader roadmap to regulate cryptocurrencies and has been gradually implemented since 2024. These steps are seen as efforts to build a fully developed regulatory framework. Senior policymakers and industry stakeholders are contributing various perspectives, striving to strike a balance between innovation and investor protection. As discussions continue, challenges related to decentralized digital assets and international data privacy regulations are emerging. These consultations are expected to continue, with hopes that ongoing engagement with stakeholders will lead to the most reasonable and effective outcomes.
Preparing for the New Regulations: Strategies of Businesses
With the anticipated regulatory changes, relevant companies are expected to gradually start preparing for them. Instead of merely waiting for the final form of the regulations to be confirmed by 2026, it is crucial to develop strategies that allow for flexible adaptation now and to build systems capable of responding to various situations. While it is difficult to predict the exact direction of the regulations, their impact, whether direct or indirect, will undoubtedly affect businesses. Therefore, responding quickly to changes and preparing proactively will be key factors in maintaining a company’s competitiveness. By adopting an active stance and preparing in advance, businesses can establish a foundation that will allow them to adapt flexibly to unforeseen changes, making it the key to successful responses.
The UK government is currently making active efforts to support the growth of the cryptocurrency industry. Uncertainty surrounding cryptocurrency policies could lead to market instability, so the government’s actions are being interpreted as a positive signal. Since November of last year, the government has started formulating policies that include staking services and other cryptocurrency-related activities, with clear regulations on cryptocurrencies expected to be established by the first quarter of next year. Although regulations are becoming stricter, the continued popularity of the cryptocurrency industry reflects expectations of new possibilities in the global economy and finance. In fact, approximately 12% of adults in the UK own cryptocurrency, and interest and investment in the sector are growing. Additionally, according to UK law, cryptocurrencies are classified as personal property, and legal procedures, including tax obligations, are applied accordingly.
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