UK will launch a new licensing regime for crypto exchanges in 2026

Companies officially operating in the country will have to re-register to offer a wide range of services

28.03.2025 - 15:50

632

3 min

What’s new? The UK is set to introduce a new authorization regime for crypto companies to operate in the local market in 2026, as announced by Matthew Long, director of payments and digital assets at the Financial Conduct Authority (FCA). The regulator is expected to have just over 12 months to consult, develop rules, and push forward with relevant legislation.

Matthew Long’s interview

What else is known? The country currently has a simplified regulatory regime, and crypto exchanges such as Coinbase, Gemini, and Bitpanda are required to register for anti-money laundering (AML).

Crypto platform Bitpanda to expand operations in the United Kingdom

Bitpanda’s cryptocurrency offering in the United Kingdom will be no different than in the European Union

The new regime will regulate the way various cryptocurrency services are offered in more detail and will require companies already operating in the country to obtain FCA approval again. Since the AML register for crypto firms opened in 2020, the FCA has received 368 applications but has only approved 50 (14%).

The new legislation is intended to define regulated cryptocurrency activities that fall under the jurisdiction of the authority. In 2023, the former UK government published documents stating that regulated activities would likely include the issuance of cryptocurrency and fiat stablecoins, as well as payment, exchange, and lending activities.

British bank governor has called for a tax on cryptocurrency purchases

According to the chair of Cavendish, this stimulates growth in the domestic economy

Thus, officials will present rules affecting various aspects of the crypto industry, including stablecoins, trading platforms, staking, dealing with the risks of digital assets impacting the financial system, and more.

The new regime is expected to be launched once all the necessary documents have been prepared.

Broker eToro launches cryptocurrency to fiat conversion in the UK and EU

The feature is available for selected clients

In developing the rules, the regulator will draw on the experience of other jurisdictions, including the European Union with its Markets in Crypto-Assets (MiCA) regulation, as well as recommendations from the International Organization of Securities Commissions (IOSCO).

Author: