UK Regulators Crack Down: Crypto Firms Face Mandatory Security Overhaul Under New FCA Rules

London’s financial watchdogs just dropped a compliance bomb—and crypto custodians are scrambling to upgrade their systems.

Cold wallets won’t cut it anymore

The FCA’s sweeping new custody requirements demand military-grade security protocols, multi-sig setups, and real-time breach detection. Forget ’good enough’—this is institutional-grade or bust.

Bank-level audits incoming

Quarterly penetration testing, mandatory insurance coverage, and proof-of-reserves checks will separate the serious players from the crypto cowboys. (Though let’s be honest—some firms still think ’cybersecurity’ means writing down seed phrases on Post-its.)

The irony? These rules might actually legitimize crypto faster than any moonboy’s Lambo dreams ever could. Nothing says ’mature asset class’ like bureaucrats demanding paperwork in triplicate.