Builders beware — The UK's 2026 crypto regime is coming

Key Points

  • The UK's Financial Conduct Authority (FCA) is planning a new "gateway" authorization regime by 2026, targeting a broader spectrum of crypto activities including stablecoins, lending, and exchanges.
  • This regulatory shift goes beyond Anti-Money Laundering (AML) checks, aiming to regulate a wider range of crypto operations, potentially affecting global crypto builders due to the borderless nature of the industry.

Summary

The UK's Financial Conduct Authority (FCA) is set to introduce a comprehensive regulatory framework for cryptocurrencies by 2026, which will significantly expand beyond the current focus on Anti-Money Laundering (AML) checks. This new regime will encompass activities like stablecoin issuance, payment services, lending, and exchanges, marking a substantial leap in regulatory oversight. Katherine Kirkpatrick Bos, general counsel at StarkWare, highlights the global implications of these changes, noting that as crypto is inherently borderless, regulatory frameworks in one jurisdiction often influence others. The FCA's plans could set a precedent for other countries, potentially leading to a more uniform global standard for crypto regulation. Builders and developers in the crypto space are advised to prepare for these changes by considering compliance measures in their product design, as ignoring these regulations could become untenable if they aim to serve a global user base. The article emphasizes the importance of proactive compliance to avoid the pitfalls of reactive adjustments when the regulations are fully implemented.

cointelegraph
April 10, 2025
Crypto
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