United Kingdom Tightens Cryptocurrency Management
In the coming time, the cryptocurrency industry in the United Kingdom will face stricter regulations. There is just over a year to prepare, as the new mechanism will be applied in 2026. Matthew Longing, Director of Digital Payment and Asset Technology at the UK Financial Conduct Authority (FCA), revealed in an interview that a new "passage gate" will be deployed to provide new licensing rights for cryptocurrency companies.
New Licensing Process
According to Longing, the new licensing process will require companies not only to comply with existing anti-money laundering rules but also to meet more stringent requirements for multiple services. Well-known companies like Coinbase, Gemini, and Bitpanda will have to go through a new review process instead of simply registering compliance with AML rules. This indicates a more rigorous level of control from the regulatory body.
Completing Regulations by 2026
FCA plans to publish new documents related to stablecoin, trading platforms, Staking, and other areas this year. All new cryptocurrency regulations are expected to be finalized in 2026 when the final policy documents are released. Since opening the AML registry in 2020, FCA has received 368 applications from companies, but only 50 companies, equivalent to 14%, were approved. This means many companies may have to go through this process again under the new regime.
Defining Cryptocurrency Activities
The UK's new regulations will define which cryptocurrency activities require FCA approval. This includes issuing stablecoin, cryptocurrency payments, exchanges, and lending services. Stablecoin will not be regulated according to the initial payment plan; instead, FCA will open a consultation on new stablecoin regulations by the end of this year. Matthew Longing said they are working to adjust current financial regulations to suit the unique nature of Stablecoin.
Licensing Process Being Perfected
FCA is still perfecting the process for cryptocurrency companies to be licensed under the new regime. Although the necessary steps for registered companies are not yet clear, the new regulations will provide broader powers. Companies may also need to reapply for approval. FCA aims to launch the new regime as soon as possible while considering European regulations and IOSCO recommendations for best practices.
