UK Brings Crypto Under Full FCA Oversight for the First Time
By Mathew Di Salvo
AI summary of the source article
The UK's Financial Conduct Authority has begun accepting authorization applications from crypto companies, placing the sector under full regulatory oversight for the first time. The finalized framework is scheduled to take effect in October 2027, requiring participating firms to meet standards for consumer protection, customer-asset safeguarding, market integrity, and financial resilience. This development follows Britain's recognition of digital assets as property based on a 2023 Law Commission recommendation. Meanwhile, the UK trails other jurisdictions, including the European Union under its Markets in Crypto-Assets regulation and the United States under the GENIUS Act.
Why it matters
According to the FCA, the new regime aims to provide consumers with greater protections while offering crypto firms clarity, legitimacy, and a clear operating framework.
Key facts
- The FCA finalized its cryptoasset framework in June, and the regime will take effect in October 2027.
- Applying firms must meet requirements covering consumer protection, customer-asset safeguarding, market integrity, and financial resilience.
- The UK previously recognized bitcoin and other digital assets as property following a 2023 Law Commission recommendation.