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According to Tulip Siddiq, Economic Secretary to the Treasury, the economic secretary to the Treasury, declared that all cryptocurrency regulations would come into effect in one go with the Financial Conduct Authority (FCA), outlining the roadmap for consultations.
The United Kingdom has adopted a different approach to the regulation of cryptocurrencies, including stablecoins and staking, following a change in government leadership. Before the change of government by the Labour, expectations had been high that stablecoin and staking regulations should have been implemented by this time. The Labour government emphasizes innovation, and so the timing for the implementation of the regulation of stablecoins has become secondary.
FCA’s Roadmap and Consultation Plan
The FCA has clarified its regulatory approach toward the crypto industry. The legislation is expected to be finalized by 2026, probably towards the end of the year. The comprehensive regulatory overhaul will follow multiple stages of consultation.
As part of the roadmap, the FCA prepares initial discussion papers on crucial issues, such as admission standards, disclosures, and market abuse. These papers are expected to be released within the quarter, and the formal consultations are scheduled for the third quarter of 2025.
The FCA has segregated the consultations into four key areas:
- Trading platforms, intermediation, lending, staking, and prudential exposures
- Stablecoins, custody, and prudential standards
- Conduct and firm standards for regulated activities
- Market behaviour and disclosures related to decentralized projects
The FCA’s decentralized nature is a significant challenge in dealing with the crypto industry. For example, it becomes a challenge to disclose data for decentralized issuers. The FCA has proposed that the exchanges could be important by offering information based on publicly available data. In this case, this will encourage decentralized projects to make their data more accessible because exchanges will likely want to list more projects while keeping their workload at a minimal level.
Crypto Ownership and Awareness in the UK
The latest YouGov survey indicates that the number of cryptocurrency holders in the UK has remained on the rise. In 2023, 12% of UK adults reported holding cryptocurrency, up from 10% reported in 2022. The average investment per holder also increased from £1,595 to £1,842. This growth shows a higher crypto awareness, as 93% of the respondents reported knowing about cryptocurrency, up from 91% the previous year.
The most known cryptocurrency remains to be Bitcoin, with 78% awareness, followed by Ethereum at 31%, and Dogecoin at 30%. The awareness for even lesser-known coins such as Solana and TRON also exists, which are recognized at 11% and 10%, respectively. Looking at crypto holders at present, it shows that Ethereum and Dogecoin are nearly as well known as Bitcoin, making them growing players in the crypto scene.
Although more people are now in ownership, myths about crypto regulation are still prevalent. According to research, one third of crypto owners are ignorant about the fact that it is not regulated, which makes it impossible to file a complaint with the FCA regarding unregulated crypto investments, wherein losses are not recoverable.
The Impact of Crypto Advertising
The role of advertising in crypto adoption is mixed. Although 60% of respondents said that advertising did not impact their investment decisions, a small percentage of those exposed to crypto ads took action. For example, 2% of respondents who had not considered buying crypto decided to invest after seeing an advert, and 10% of those contemplating crypto made a purchase. However, the advertisements also deterred 9% of the respondents, as they put off their investment decisions.
Despite the growing interest and aggressive marketing efforts, crypto remains a high-risk investment in the UK. The dearth of regulatory oversight means the investors are not even assured of protection if something goes amiss; thus, they should be ready to lose every penny.
Matthew Long, the director of payments and digital assets at the FCA, said that clear rules that make the crypto sector safe, competitive, and sustainable will be necessary. He stated that the FCA would work closely with the UK government, international partners, industry players, and consumers to ensure the rules are well-crafted to support innovation while maintaining market integrity and consumer trust.
As the FCA continues shaping the future of crypto regulation in the UK, the industry is paying close attention to the government’s steps toward culminating the robust framework by 2026.
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