The UK’s digital asset industry risks falling behind its global counterparts as Britain’s financial regulator drags its feet in implementing a concrete cryptocurrency regulatory regime.
In a new discussion paper, the Financial Conduct Authority (FCA) has sketched a rough roadmap detailing the key checkpoints towards codifying the nascent industry.
According to the roadmap, a discussion paper concerning rules surrounding the conduct of trading platforms, intermediaries, leaders and staking platforms will be published in the first half of 2025. The results will be published in a consultation paper in late 2026-early 2026.
In the third quarter of 2025, consultation papers touching on complaints handling, governance, consumer duty, market abuse and other regulated activities will be published.
The final outcome of all of these consultations will be published in a policy statement at some point in 2026 before going live at an undetermined date thereafter.
Image Credit: FCA
In contrast, the European Union has finalised its crypto framework in the Markets in Crypto-Assets Regulation (MiCA) Act. This was entered into force in June 2023 although it remains in a transitional phase.
MiCA has established clear categories for digital assets, outlined the requirements for issuing crypto tokens and set out regulations for trading platforms and other crypto players.
Up until this year, the US Securities and Exchange Commission (SEC) has taken a different approach to crypto regulation with an enforcement-led regime under SEC chair Gary Gensler.
However, Gensler, a renowned crypto sceptic, will soon step down as president-elect Donald Trump takes over the White House.
Trump, who has positioned himself as a pro-crypto president, is expected to appoint more sympathetic individuals to key regulatory positions.
There is, however, a distinct lack of clarity over the US’ roadmap to crypto regulation.