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UK Watchdog Advances Crypto Regulation: Final Consultation Underway

The UK's Financial Conduct Authority (FCA) has entered the final consultation phase regarding comprehensive crypto regulations.

This consultation follows the FCA's aim to integrate digital assets within the established regulatory framework in the UK.

The FCA is seeking feedback on ten proposed rules designed to ensure that crypto firms align their operations more closely with traditional financial market standards.

These proposed regulations cover a variety of areas such as business conduct, credit restrictions for purchasing crypto, and the safeguarding of digital assets.

The regulator emphasized that, while the intention is to enhance transparency, the inherent risks associated with crypto investing will remain.

Stakeholders are encouraged to provide their comments by March 12, concluding an open process aimed at fostering a reliable and competitive crypto market.

Since December, the FCA has been refining its approach, making significant strides in developing a robust regulatory framework.

Notably, a new licensing regime for crypto asset service providers is anticipated to open for applications by September 2026, promising stricter oversight.

In parallel, discussions are ongoing about prohibiting cryptocurrency donations to political parties, which could impact entities like Reform UK.

As part of this evolving landscape, the UK government is also considering tax reforms for decentralized finance activities, aiming to ease the tax burden on users interacting with digital platforms.