UK Moves to Regulate Crypto With Balanced Approach

The Financial Conduct Authority unveiled its regulatory framework for crypto assets, marking a pivotal shift in Britain's stance toward digital currencies. The proposals, released alongside draft legislation, aim to foster innovation while mitigating risks in a market notorious for volatility.

Notably, the FCA retreated from earlier restrictive measures—allowing platforms to list proprietary tokens and engage in direct customer transactions. This calibrated approach seeks to position the UK as a competitive hub for crypto enterprises without compromising investor protections.

Three policy documents outline the adaptation of traditional financial rules to crypto's unique characteristics. Stakeholders have until February 12 to submit feedback, with final regulations slated for 2027 implementation.

"Regulation is coming—and we want to get it right," said David Geale, the FCA's payments and digital finance lead. The watchdog's dual mandate: safeguarding consumers while enabling technological progress.