UK Crypto Regulations Expected to Generate £120 Million Net Benefit Over Ten Years

The UK Financial Conduct Authority (FCA) estimates its new cryptoasset regime will generate a net benefit of just £120 million over ten years. This figure was calculated by FM Intelligence, who found that the benefits (£1.435 billion) outweighed the costs (£1.315 billion) for 325 firms under the new rules.

The largest benefit in the FCA's model is £735 million assigned to the value consumers place on stronger regulatory protections. This assumption accounts for more than half of the total benefits.

Removing this assumption would leave a remaining £700 million of benefits, which falls short of covering the estimated costs by £615 million.