UK watchdog announces plans to fully regulate crypto by 2026
On Tuesday, November 26, the UK’s financial watchdog revealed plans to introduce complete rules for cryptocurrency by 2026, as the popularity of volatile digital currencies like bitcoin continues to soar.
Bitcoin, the world’s largest cryptocurrency, has seen a surge in value following Donald Trump’s victory in the US presidential election earlier this month. However, it has also faced significant drops in recent years.
Trump has promised to make the United States the global leader in crypto by creating favorable regulations, which has helped drive bitcoin closer to the $100,000 mark.
The Financial Conduct Authority (FCA) shared its roadmap for crypto regulation on Tuesday, announcing it will consult on new rules before finalizing them in 2026. The watchdog also plans to introduce rules for “stablecoins” – cryptocurrencies tied to traditional currencies, like the dollar – early next year.
The FCA’s research shows that 12% of adults in the UK now own cryptocurrency, a significant rise. However, it also noted that crypto remains largely unregulated in the UK and continues to be a high-risk investment.
“Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK,” said Matthew Long, the FCA’s director of payments and digital assets.
Last year, the FCA introduced stricter rules on the promotion and sale of cryptocurrency, requiring companies to clearly warn customers about the risks involved in these high-risk investments.
Despite these efforts, the FCA has faced criticism from a parliamentary group, which accused the watchdog of being “not fit for purpose.” They described the regulator’s actions as “slow and inadequate,” with leaders being “opaque and unaccountable.” This criticism comes amid several recent scandals affecting the UK’s financial sector.
The FCA responded by saying, “We sympathise with those who have lost out as a result of wrongdoing in financial services. However, we strongly reject the characterisation of the organisation.”
