- UK’s Financial Conduct Authority (FCA) confirmed that it will regulate the cryptocurrency market by 2026.
- The plan aims to regulate the growing crypto ownership in the UK, which has increased by 4% in two years.
- The FCA will publish papers on various crypto-related topics like market abuse, disclosures, stablecoins, staking, trading platforms, and lending by the end of next year.
The Financial Conduct Authority (FCA), the UK’s financial regulator, has confirmed it plans to regulate the cryptocurrency market by 2026. Cryptocurrency ownership has been growing rapidly across the island nation, prompting the need for oversight.
Background on FCA’s Plan
The FCA aims to release a roadmap detailing how it will regulate cryptocurrencies. This comes after crypto ownership rose 4% in the UK over two years. The Economic Secretary, Tulip Sidiq, is now taking regulatory attempts more seriously.
The agency will publish papers on crypto market abuse and disclosures next month. This is to keep the public informed. Moreover, research papers on stablecoins, staking, trading platforms, and lending will be published by end of next year.
“We’re committed to working closely with the Government, international partners, industry and consumers to help us get the future rules right,” said FCA’s Matthew Long.
What the Rules and Regulations Will Look Like
The UK will be the first country in the EU to officially regulate cryptocurrencies by 2026. Around 7 million people in the UK own some form of digital assets, despite the negativity surrounding them. Once regulations are in place, other European countries could follow suit.
The cryptocurrency market was started as decentralized but is now coming under the purview of the UK government. The line between centralized and decentralized is blurring as the market expands globally. The US and other Western nations have yet to consider regulating the crypto space.
Conclusion
The UK taking steps to regulate cryptocurrencies signals a major shift. Crypto ownership is rising across the world, prompting governments to exercise more oversight. While this goes against cryptocurrency’s decentralized ethos, it may also bring more legitimacy to the space. Other countries will be closely watching the UK’s regulatory approach in the coming years.
