According to a Nov. 26 report out of Bloomberg, the U.S. Securities and Exchange Commission (SEC) the Bank of England, and the Treasury will help the Financial Conduct Authority (FCA) in the United Kingdom to finalize the cryptocurrency regulations in 2026.
FCA is currently crafting rules to satisfy various needs, including setting up rules around market abuse, handling crypto trading platforms, facilitating lending practices, and managing stablecoins in the quickly changing crypto environment. The regulator wants to start consultations and discussions with industry stakeholders by late 2024 so the U.K. can continue to put itself in a competitive position on the global stage.
FCA’s Director of Payments and Digital Assets, Matthew Long, told Bloomberg TV that ‘we’ve had many, many good conversations lately with industry around how we’re going to mix the learnings from regulation around the world.’
FCA Gathers Feedback From 100+ Organizations On Crypto
According to a blog post on the FCA’s website, the FCA had also gathered feedback from more than 100 organizations, both in the cryptocurrency and traditional finance sectors. These include crypto exchanges, banks, trading firms, blockchain analytics companies, and the U.K.’s Treasury, Bank of England, and SEC.
Under Chairman Gary Gensler, the SEC has come under fire for its aggressive approach to crypto regulation. In 2023, the SEC took a record 46 enforcement actions against crypto-tied businesses. The action involved high-profile firms such as Bittrex and Binance, which provide a glimpse of the SEC’s strict approach to the industry.
The SEC also criticized his letter, but Long said that FCA was committed to upholding market abuse, a key activity involved in ensuring the functioning of financial markets and investor confidence in made decisions. He wanted to know exactly what market abuse looks like in the crypto realm and how the regulatory framework can help fight it.
But Long also emphasized the FCA’s objective to encourage the development of such a fair, orderly, and transparent environment for crypto traders and industry players alike. Although a lot of work still lies ahead, the FCA is happening, he acknowledged, through ongoing discussions and roundtable talks with the Treasury and crypto industry stakeholders.
Long said ultimately, we would like to see our regime reflect on the characteristics of crypto and what that would mean to deliver in the client’s best interests.
Now, the FCA’s latest data finds roughly 12 percent of the U.K.’s adult population owns cryptocurrency, nearly double what it found a year ago. From 91 percent, awareness of crypto has risen 2 percent across Great Britain to 93 percent, suggesting a boost in the public’s interest and embrace of digital assets too.
In conclusion, our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the U.K.
At a time when crypto is rapidly gaining global attention, with more countries like the US and Hong Kong taking big steps toward comprehensive regulation, the U.K. is positioning itself to set the stage for an upcoming regulatory framework highlighting virtual assets. With the growing crypto market, regulators are pressured to create regulations that allow innovation and protect investors.
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