UK Crypto Regime Aims for GBP 120 Million Net Benefit Over Decade

The UK Financial Conduct Authority (FCA) estimates that its new cryptoasset regime will generate a net benefit of just GBP 120 million over a 10-year period. This assessment is based on FM Intelligence's analysis, which found GBP 1.435 billion in modeled benefits against GBP 1.315 billion in costs.

The largest benefit in the FCA's model is not an observed drop in fraud or losses but rather GBP 735 million assigned to the value consumers place on stronger regulatory protections. This assumption accounts for more than half of the total benefit, with a significant portion of it being sensitive to removal.

David Geale, Executive Director of Payments and Digital Finance at the FCA, emphasized that the rules would hold firms to standards similar to other financial providers. He noted, '... though we can't regulate away risk.'