Britain’s financial watchdog on Tuesday launched plans for comprehensive regulatory rules on cryptocurrencies from 2026, amid growing demand for highly volatile bitcoin.
The world’s largest cryptocurrency has risen in value since Donald Trump won the US presidential election in early November.
However, bitcoin has also suffered huge losses in recent years.
Trump has pledged to make the United States the crypto capital of the world through favorable regulations, pushing bitcoin toward the symbolic $100,000 mark.
Britain’s Financial Conduct Authority announced a roadmap on Tuesday that includes consultations on crypto regulation ahead of the watchdog’s “final rules” in 2026.
The FCA also plans rules on “stable coins”, which are backed by a traditional currency, most often the dollar, by the start of next year.
Cryptocurrency ownership has risen to 12% of adults in the UK, according to regulator data released on Tuesday.
“Currently, crypto remains largely unregulated in the UK and poses a high risk,” the FCA said.
“Our research findings highlight the need for clear regulation that supports a safe, competitive and sustainable crypto sector in the UK,” said Matthew Long, director of payments and digital assets at the watchdog.
Last year, the FCA tightened rules on the promotion and sale of cryptocurrency, including measures to ensure that companies promoting these digital assets give a “clear warning” that customers could lose money in “high risk” investments.
An “inadequate” FCA
News of the FCA’s roadmap came as an all-party parliamentary group on Tuesday criticized the watchdog for its activity over the past three years, saying it was “not fit for purpose “.
In a report, MPs and their peers called for an overhaul after concluding the regulator “is seen as incompetent at best, dishonest at worst”.
They added: “Its actions are slow and inadequate, its leaders opaque and irresponsible. »
This follows a series of recent scandals which have marred the UK financial sector.
“We sympathize with those who have lost out because of wrongdoing in financial services,” the FCA responded.
“However, we strongly reject any characterization of the organization,” he added in a statement.
