The post UK FCA to Roll Out New Crypto Authorization Process by 2026 appeared first on Coinpedia Fintech News
The U.K. is gearing up for tougher crypto regulations, with just over a year left for the industry to prepare, revealed a senior official from the country’s financial regulator.
New Authorization Process For Crypto Companies
Matthew Long, director of payments and digital assets at the U.K.’s Financial Conduct Authority (FCA), shared in an interview with CoinDesk that the “gateway regime” set for 2026 will introduce a new authorization process for crypto companies.
“We will have a gateway which will allow authorization. But obviously we’ve got to go through those consultations, create those rules and get the legislation for that to take place,” Long noted.
Notably, the new regime will go beyond the current anti-money laundering (AML) rules. Crypto companies like Coinbase, Gemini, and Bitpanda will need to undergo a new approval process with the FCA, instead of just registering to comply with AML rules. This will involve meeting stricter requirements for a wider range of services they provide.
FCA to Finalize Crypto Rules by 2026
Besides, the FCA plans to release new papers this year on stablecoins, trading platforms, staking, and more. The full new crypto regulations are expected to be finalized in 2026, once the final policy papers are published.
Since opening its anti-money laundering (AML) register in 2020, the FCA has received 368 applications from firms looking to comply. However, only 50 of those firms, or 14%, have been approved. This means many companies may need to go through the process again under the new regime.
The U.K. is preparing new rules that will define which crypto activities need FCA approval. This includes things like stablecoin issuance, crypto payments, exchanges, and lending services.
FCA to Propose New Stablecoin Rules
Stablecoins won’t be regulated under the same rules as payments, as originally planned. Instead, the FCA will consult on new stablecoin rules later this year. Matthew Long noted that they’re working to adapt existing financial regulations to fit the unique nature of stablecoins.
The FCA is still finalizing the process for crypto companies to get authorized under the new regime. While it’s unclear what steps those already registered will need to take, the new rules will offer broader permissions. Companies may also need to reapply for approval. The FCA aims to launch the new regime as soon as possible, while also considering Europe’s regulations and IOSCO’s recommendations for best practices.
