Cross-border rules and compliance tools may become essential as jurisdictions align around stricter standards
The UK’s Financial Conduct Authority (FCA) is preparing to launch a broad crypto oversight framework by 2026 that could bring activities such as stablecoin issuance, crypto lending, cross-chain bridging, and payment functionality under direct regulatory supervision.
The upcoming regime is expected to replace the current narrow focus on anti-money laundering (AML) with a full licensing and compliance structure for a wider set of digital asset services.
In a November 2024 FCA blog post, Director of Payments and Digital Assets Matthew Long highlighted ongoing efforts to shape the new crypto regime, including consultations with more than 100 stakeholders. These include exchanges and analytics firms, law firms, and international regulators.
Discussions centered on areas such as admissions and disclosures, market abuse protections, and fair trading systems tailored to the unique characteristics of crypto markets.
In parallel with the crypto rulemaking, the FCA has also announced PISCES (Private Intermittent Securities and Capital Exchange System), a new trading platform designed to allow private firms to sell existing shares to outside investors.
Intended to boost capital access for high-growth startups, PISCES will operate through intermittent auctions and offer lighter disclosure requirements than traditional IPOs.
The UK Treasury is expected to present draft legislation for PISCES by May 2025.
Trading platforms and crypto infrastructure may face expanded scrutiny
While the precise contours of the FCA’s 2026 regime are still under development, recent statements and discussions suggest that developers involved in some crypto products may be affected, especially if they retain some level of control or custody over user funds.
Participants in the FCA’s consultation process raised concerns about how decentralized assets would be handled, particularly when platforms can’t directly engage with token issuers.
The FCA indicated it is considering differentiated rules for retail versus institutional markets and welcomed proposals for industry-led standards in areas such as disclosures and market integrity. Crypto exchanges that perform multiple roles, such as brokerage or token issuance, were flagged as posing elevated risks of conflicts of interest.
UK rules could shape global compliance strategies
The UK’s initiative comes as major jurisdictions race to develop or expand crypto legislation, including the European Union’s Markets in Crypto-Assets Regulation (MiCA) and evolving guidance from IOSCO.
While the FCA aims to coordinate internationally, market participants may still face fragmented requirements across borders.
Given the global nature of crypto, developers are being urged to prepare early. Legal experts warn that targeting UK-based users could bring firms within the FCA’s jurisdiction.
As seen with the UK’s 2023 crypto marketing rules, enforcement may apply to web interfaces, onboarding flows, or any form of public solicitation directed at UK users.
By 2026, crypto projects may need to integrate compliance considerations directly into their infrastructure.
