FCA Crypto Crackdown Forces Non-Compliant Firms Out of UK Market
The Financial Conduct Authority (FCA) has introduced new regulations for the UK crypto market, and Coinbase's UK chief executive Keith Grose believes this will eliminate bad actors and boost consumer trust.
Grose said that the new rules will force non-compliant firms out of the British market entirely, as they require companies to hold a full financial licence, known as the FSMA Part 4A Permission, to conduct business with UK clients from October 2027.
The FCA has also introduced stronger resilience standards and capital and stress testing to ensure that crypto platforms can withstand significant market shocks. Additionally, a new industry-led framework will be implemented to detect and prevent market manipulation, insider trading, and illicit financial activity.
Grose argued that stricter oversight would help legitimise the sector among consumers who remain sceptical, saying: 'It builds confidence in our overall system and security.' He also welcomed the return of Lucy Rigby as City minister, reflecting the broader fintech sector's view that she 'gets' the importance of these companies in driving economic growth.