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The U.K.’s Financial Conduct Authority (FCA) is moving to ease certain rules for cryptocurrency companies, signaling a more supportive approach to the fast-growing sector. According to a Financial Times report, the regulator will waive some traditional financial requirements, recognizing that crypto firms operate differently from banks and investment platforms.
While rules will be relaxed in several areas, the FCA plans to tighten regulations around industry-specific risks, such as cyberattacks. Firms may face less strict requirements regarding senior managers, systems, and controls, as cryptocurrency companies are not seen as posing the same systemic risk as traditional finance institutions. Customers may also forego cooling-off periods, reflecting the volatile nature of crypto prices.
David Geale, FCA executive director for payments and digital finance, emphasized that existing financial rules cannot simply be “lifted and dropped” onto crypto. The regulator aims to fully integrate cryptocurrency into its framework by 2026, adapting oversight to support innovation while addressing unique risks in the digital asset market.
