The UK Financial Conduct Authority (FCA) has announced its priorities for 2026, reflecting its goal of fostering growth, innovation, and the adoption of technology in the financial sector. In a letter to Prime Minister Keir Starmer, the FCA emphasized its commitment to finalizing regulations for digital assets, developing UK-issued stablecoins, and strengthening the nation's digital financial infrastructure.
This letter outlines the direction for promoting development with various initiatives such as:
- Supervise the digital asset market and issue specific guidelines for crypto companies.
- This allows fund managers to convert assets into Token, enabling a faster and more efficient payment system.
- Simplify licensing procedures for new and growing businesses, thereby making it easier for them to access Capital and increasing competitiveness in the payments and investment markets.
“The FCA’s support for stablecoins and digital financial infrastructure shows a strong shift toward a more accessible, real-time, and better-connected financial system,” said Will Beeson, Chia -founder of UK digital bank Allica and former head of Standard Chartered’s digital asset platform. “Clear regulations will help UK businesses compete globally and drive practical crypto adoption, particularly for small and medium-sized enterprises.”
The FCA's plan for 2026 also includes: managing the rollout of flexible recurring payments, supporting small and medium-sized enterprises (SMEs) in accessing Capital through open finance, and promoting the Tokenize of investment funds. All these steps aim to maintain the UK's position as a leading financial center amidst constantly changing technology.
British Chancellor Rachel Reeves, along with other Treasury leaders, expressed support for the FCA's direction, which aims to provide clarity for businesses, encourage innovation, and ensure transparency and safety in the market.
Following the plans of the FCA, the UK government is also preparing to bring all cryptocurrency companies under existing financial regulation starting in October 2027, with a bill expected to be submitted to Parliament in the near future.
According to Reuters , the bill will follow the direction of the draft released in April, which addresses rules for crypto exchange, custodians, and stablecoin issuers. A Treasury Department representative also confirmed that the bill aims to expand existing financial regulations to the crypto sector, rather than creating an entirely new regulatory framework.
If approved, this would be a significant milestone for the digital asset sector in the UK, bringing the legal transparency that both domestic and international companies have long awaited.
The UK is adapting to the American approach to management.
By bringing crypto companies into the existing financial regulatory framework, the UK is moving in the same direction as the United States. This approach differs from the European Union's Markets in Crypto-Assets (MiCA) regulations – which were specifically designed for the crypto industry and officially came into effect earlier this year.
Under this new framework, crypto businesses will have to comply with the standards of traditional financial institutions, including regulations on governance, customer protection, and maintaining market transparency.
Secretary Rachel Reeves emphasized that the bill aims to bring "clear rules of the game" to the crypto industry and remove fraudulent elements from the market.
Experts and industry insiders alike have praised the FCA's clear prioritization of 2026 and its regulatory plan for 2027. However, some have also warned that excessive regulation could force innovative companies to relocate to other markets.
“These steps help solidify the UK’s position in the global digital financial market,” said Will Beeson. “However, regulators need to strike a balance between oversight and flexibility so as not to stifle growth in a rapidly changing market. Sensible action and speed will help businesses adapt without ‘overnight’ transformation.”
