FCA Signals Accelerated Push Toward Full UK Crypto Regulation

David Geale, the FCA’s Executive Director for Payments and Digital Finance, said the UK is “open for business” as it moves to bring cryptoassets and stablecoins fully within its regulatory perimeter. Speaking at a City & Financial Global event, Geale described the current moment as a turning point where legislation, policy design and industry input are converging to establish a balanced regulatory framework.

Geale highlighted the contrast between optimism around digital innovation and concerns over volatility, valuation and security risks. He noted that more than seven million UK adults have owned crypto, underscoring the need for a clear and proportionate regime.

The FCA said its aim is to support innovation while maintaining strong consumer protections. The regulator already oversees firms for AML/CFT compliance and financial promotions and is preparing to broaden its remit. Geale encouraged firms to begin preparing for authorisation, saying the FCA will offer guidance, defined standards and free pre-application meetings.

FCA Outlines Roadmap Covering Stablecoins, Custody and Prudential Rules

Geale detailed the FCA’s regulatory roadmap, which includes ongoing consultations on stablecoin issuance, custody rules, prudential requirements and cross-cutting obligations. Further consultations will address market abuse, admission and disclosure rules, and the Consumer Duty. Policy statements will follow after feedback, forming the foundation for the new rulebook before the authorisation gateway opens.

The FCA is also expanding its Regulatory Sandbox to incorporate real-world testing. A stablecoin-specific cohort is now live, with the first participant—an unnamed major firm testing a GBP stablecoin for payments—already accepted. The regulator has also admitted Eunice to test disclosure templates designed to improve investor understanding, which will inform future standards.

FCA Seeks to Balance Innovation and Consumer Protection

Geale said conventional financial rules cannot be directly applied to decentralised crypto systems due to issues such as unclear ownership, cross-border risks and the absence of centralised intermediaries. The FCA is proposing to extend bank-level operational resilience standards across all crypto firms to ensure system robustness during outages or cyber incidents.

Consumer protection remains central to the FCA’s approach. Geale stressed the importance of transparency, even if risk warnings discourage some users. Differentiated requirements for wholesale and retail-facing firms are under consideration. The regulator will continue working with the Bank of England on systemic stablecoin oversight to ensure consistent treatment across regimes.

On the global front, the FCA is coordinating with IOSCO, the Financial Stability Board, FATF and other international bodies to align standards. Geale said the UK is not behind the US despite legislative discussions such as the GENIUS Act, noting that the UK has already advanced consultations on issuer and prudential requirements. Policy sprints planned for March will gather banks, payment firms and fintechs to explore stablecoin use cases across retail and wholesale markets.