The UK government has revealed plans to establish a comprehensive regulatory regime to position the country as a global leader in digital assets. The proposed rules aim to regulate crypto exchanges, dealers, and agents similarly to traditional financial firms. The Financial Services and Markets Act 2000 (Cryptoassets) Order 2025 will introduce six new regulated activities, including crypto trading, custody, and staking. Unlike the EU’s Markets in Crypto-Assets (MiCA), the UK will apply full securities regulation to crypto, including capital requirements, governance standards, and market abuse rules. Experts view this move as a step towards embracing a rules-based digital asset economy, making the UK a safe harbor for responsible innovation. The new regulations also reclassify stablecoins as securities, requiring UK-issued fiat-backed tokens to meet prospectus-style disclosures and redemption protocols. Foreign crypto firms serving UK retail clients will require approval from the Financial Conduct Authority (FCA), and crypto staking services will now need to register. The FCA plans to finalize these rules in 2026, paving the way for the UK regulatory regime to become operational. This regulatory clarity is expected to encourage responsible growth in the UK’s digital asset industry.
