A new report appears to indicate that crypto firms are not quite ready for the looming regulation they must comply with to provide services to UK customers.
According to Zumo and their UK Regulatory Preparedness Assessment survey, only one in ten platforms believes they are fully prepared for the regulatory regime. The UK Financial Conduct Authority’s application platform is scheduled to open in September, with approximately 60% of firms still assessing the rules.
While 9 out of 10 surveyed firms indicate they will apply, only 10% report being fully prepared for compliance.
Full implementation of the regulatory framework will take place in October 2027, so there remains some time.
Half of the surveyed crypto firms are said to have concerns about financial penalties or regulatory sanctions, with the same percentage worried about loss of revenue or market share.
Zumo says the survey shows the “gap between ambition and firms’ current state of readiness.”
Zumo’s Founder and Chief Executive Nick Jones says there is a difference between “ambition and execution.”
Zumo is a firm that aims to partner with aspiring crypto firms that seek to provide services in the UK.