The UK initially expected to reveal new rules to manage the burgeoning stablecoin sector of digital assets this year. In recent days, the UK government revealed that stablecoin rules were being pushed back until 2025, but the change will incorporate broader regulations that will enable the crypto sector, expanding the remit of the UK Financial Conduct Authority (FCA). The FCA has publicly posted a timeline for the new rules.
Today, CI has received several comments from UK Fintechs in the digital asset sector, reflecting on the announcement.
Jack Land, Head of UK Growth of MetaWealth – a tokenized real estate investment platform, welcomed the FCA’s roadmap “laying out comprehensive yet ambitious plans to establish a fully regulated digital asset framework by 2026.”
“I welcome the FCA’s roadmap for digital assets regulation, laying out comprehensive yet ambitious plans to establish a fully regulated digital asset framework by 2026. The creation of a clear framework for all UK businesses and operations to follow will be a significant catalyst for growth for the sector, but most importantly, and will ensure safe and reasonable protection for market participants. I am confident that the FCA’s proactive stance signals a significant turning point for the UK’s digital asset landscape, recognising for the first time the benefits and market efficiencies of welcoming blockchain-based assets into the financial ecosystem. Today’s roadmap not only addresses potential problems but also acknowledges the substantial benefits of tokenised assets, including enhanced market liquidity, streamlined compliance mechanisms and improved transparency of transactions.”
Land says the roadmap is meaningful progress, and the UK Fintech and crypto sectors will monitor its development closely as the regulator looks to balance innovation and investor protection. The goal is to enable a “world-leading environment for entrepreneurs to build projects transforming industries with digital assets and tokenization.”
Mouloukou Sanoh, Co-founder and CEO of DeFi firm MANSA, called the announcement of comprehensive crypto regulation a “landmark” decision. Sanoh said it is an encouraging sign for the UK’s growing crypto community.
“I am encouraged by the FCA’s plans to cultivate a safe, competitive and sustainable cryptocurrency market, with a series of carefully planned consultation papers that could position the UK as a global leader in blockchain crypto innovation. For emerging markets, this regulatory clarity represents a game-changing opportunity. The roadmap signals to crypto entrepreneurs worldwide that the UK will soon be a stable, innovative environment that can attract cutting-edge financial technologies. By providing a clear regulatory pathway, the UK could enable innovators to build liquidity mechanisms that can transform economic participation in developing regions. Tokenisation offers emerging markets a revolutionary financial tool, allowing local assets and entrepreneurs to connect directly with international capital markets. We believe the FCA’s approach will not just regulate crypto assets, but will fundamentally reshape how developing economies access global investment, breaking down traditional financial barriers and creating unprecedented opportunities for economic democratisation.”
Sanoh cautioned that the promising roadmap must be followed by the actual execution of its goals. Delivering legislation and guidelines matters and will provide certainty to the crypto sector.
“If the FCA is successful, the UK can become one of the most attractive jurisdictions globally to build a blockchain-based business, attracting leading talent and businesses and furthering the country’s role as a key tech hub. Stumble, and the UK will miss out on a golden opportunity to grow its tech community and be at the forefront of an era-defining technological shift.”
