UK Sets Ambitious Agenda to Lead in Digital Finance Through Comprehensive Crypto Regulation Plan

The United Kingdom is establishing the foundation for what could evolve into one of the most comprehensive crypto regulatory frameworks globally.

In a calculated initiative to secure global leadership in digital finance, UK officials are developing a thorough framework to subject crypto firms to the same rigorous standards that regulate conventional finance.

Instead of adopting the EU’s less stringent MiCA regulations, the UK is adopting a securities-focused approach. This entails implementing disclosure requirements, capital reserves, and governance standards for entities involved in cryptoasset trading, staking, and custody. The draft legislation introduces six new regulated activities, clearly outlining which services fall under the Financial Conduct Authority’s supervision.

Circle’s Dante Disparte commended the UK’s choice to prioritize clarity over uncertainty, stating it is a significant move towards promoting responsible innovation. Bitget’s COO, Vugar Usi Zade, echoed this view, indicating that this decision finally provides crypto businesses with the transparency needed for product planning and market engagement in the UK.

The proposed framework redesignates UK-issued stablecoins as securities rather than e-money, requiring the same disclosure standards as those in capital markets. Foreign-issued stablecoins will still be permitted, but only through regulated platforms.

DeFi remains a nebulous area. Liquid and delegated staking providers will be obliged to register, but individual stakers and interface-only platforms may be exempt. Nevertheless, there are growing concerns regarding the extent of these regulations—particularly for agile DeFi startups that cannot shoulder the costs of bank-level compliance.

The FCA is anticipated to finalize the crypto regulatory framework by 2026, seeking to balance innovation with oversight while reinforcing the UK’s goal of leading the global digital asset landscape.