Market News

UK Takes Significant Steps in Crypto Regulation Amid Payment Hurdles

Recent findings indicate that around 40% of payments to crypto platforms in the UK are either blocked or delayed by banks.

This situation poses challenges for investors and businesses operating within the cryptocurrency sphere, highlighting the friction between traditional finance and digital assets.

In response, the UK's Financial Conduct Authority (FCA) is advancing its regulatory framework for cryptocurrencies with a final consultation phase currently underway.

The FCA aims to integrate digital assets into an established regulatory system, proposing ten rules to align crypto firms with traditional market standards.

These regulations address crucial areas, including business conduct, credit restrictions, and the safeguarding of digital assets.

While these measures seek to improve transparency, the FCA acknowledges that the risks associated with crypto investments will persist.

Stakeholders have until March 12 to submit their feedback on the proposed rules, marking an important step towards a stable and competitive crypto market.

Additionally, the FCA is expected to introduce a new licensing regime for crypto asset service providers by September 2026, signaling stricter oversight in the industry.

Alongside these regulatory efforts, there is ongoing discussion about banning cryptocurrency donations to political entities, which could have wider political implications.

Overall, these developments reflect the UK's intent to create a balanced approach to crypto regulation, addressing both the need for innovation and the safeguards for investors.