The British government of the United Kingdom (UK) has announced plans to implement comprehensive regulations on Bitcoin (BTC) and other cryptocurrencies from 2026.
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Britain’s Financial Conduct Authority (FCA) has outlined a plan that includes consultations on crypto regulation ahead of “final rules” that will be implemented in just over a year. The FCA also plans to regulate stablecoins from 2025. Stablecoins are cryptocurrencies whose underlying value is linked to another asset, usually the US dollar.
The UK government says crypto regulations are needed now that 12% of adults in the UK own some form of digital assets. The plan to fully regulate cryptocurrencies contrasts with the situation in the United States, where President-elect Donald Trump is expected to take a lax approach to regulating digital tokens. The price of BTC has risen more than 30% since Trump’s re-election due to expectations of less regulation.
Strengthen the rules on cryptography
Currently, cryptocurrencies are unregulated in the UK, making them a high-risk investment, according to the FCA. “Our research findings highlight the need for clear regulation that supports a safe, competitive and sustainable crypto sector,” the watchdog said in announcing its upcoming rules.
The UK government has been debating crypto regulation for years. In 2023, the FCA strengthened the rules relating to the promotion and sale of cryptocurrencies. However, so far the UK government has not proposed comprehensive market regulation regarding Bitcoin and other cryptocurrencies.
The price of Bitcoin has increased by more than 130% this year.
Is BTC a buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we instead look at the cryptocurrency’s three-month performance. As the chart below shows, the price of BTC is up 52% over the past 12 weeks, which is a good performance.
