UK Crypto Firms Face Stricter Regulation Under FCA Oversight

The UK's Financial Conduct Authority has launched authorisation applications for crypto firms, bringing them under full regulation for the first time.

This move aims to provide clarity and legitimacy to the sector. Firms must demonstrate adherence to standards covering consumer protection, customer-asset safeguarding, market integrity, and financial resilience.

The FCA finalized its regulatory framework in June and expects the regime to take effect in October 2027. The UK is advancing digital asset legislation recommended in 2023. Despite this progress, Britain trails behind the EU's MiCA regulation and the U.S.'s GENIUS Act in implementation.