The UK Financial Conduct Authority (FCA) has announced its priorities for 2026, reflecting its goal to promote growth, innovation, and the application of technology in the financial sector. In a letter sent to Prime Minister Keir Starmer, the FCA emphasized that it will refine regulations for digital assets, develop stablecoins issued in the UK, and strengthen the country's digital financial infrastructure.
This letter outlines the direction to promote development with various initiatives such as:
Monitoring the digital asset market and issuing specific guidelines for crypto companies.
Allowing fund managers to convert assets into token form, applying faster and more efficient payment systems.
Simplifying the licensing process for new and growing businesses, thereby helping them access capital more easily and increasing competitiveness in the payment and investment markets.
"The FCA's support for stablecoins and digital financial infrastructure shows a strong shift towards a more accessible financial system, real-time transactions, and better connectivity," Mr. Will Beeson – co-founder of Allica Bank in the UK and former leader of the digital asset platform Standard Chartered – shared. "Clear regulations will help UK businesses compete globally while promoting practical crypto applications, especially for small and medium-sized enterprises."
The FCA's plan for 2026 also includes: managing the implementation of flexible recurring payments, supporting small and medium-sized enterprises in securing loans through open finance, as well as promoting the tokenization of investment funds. All these steps aim to maintain the UK's position as a leading financial center amid rapidly changing technology.
Mr. Rachel Reeves – the UK Chancellor – along with finance ministry leaders expressed support for the FCA's direction, with the goal of providing clarity for businesses, while encouraging innovation and ensuring transparency and safety in the market.
Following the FCA's plans, the UK government is also preparing to bring all cryptocurrency companies under the existing financial regulatory framework starting from October 2027, with a bill expected to be presented to Parliament soon.
According to Reuters, this bill will follow the draft published in April, which discusses rules for crypto exchanges, custodians, and stablecoin issuers. A representative from the Treasury also confirmed that this bill aims to extend existing financial regulations to the crypto sector, rather than creating an entirely new regulatory framework.
If passed, this will be a significant milestone for the digital asset sector in the UK, bringing the legal transparency that both domestic and international companies have long awaited.
The UK is adjusting its approach to a US-style regulatory model.
By bringing crypto companies into the existing financial legal framework, the UK is heading in a direction similar to that of the United States. This approach is different from the European Union's Markets in Crypto-Assets (MiCA) regulations, which were specifically designed for the crypto industry and have been officially implemented since the beginning of this year.
With this new framework, crypto businesses will have to comply with standards for traditional financial institutions, including regulations on governance, customer protection, and maintaining market transparency.
Minister Rachel Reeves emphasized: The bill aims to provide "clear rules" for the crypto industry and eliminate fraudulent elements from the market.
Experts and industry insiders highly appreciate the FCA's clear prioritization for 2026 and the legal framework for 2027. However, some also warn that overly stringent regulations could force innovative companies to relocate to other markets.
"These steps help reinforce the UK's position in the global digital finance market," Mr. Will Beeson noted. "However, regulators need to balance supervision and flexibility to avoid stifling growth in a rapidly changing market. Reasonableness and speed will help businesses adapt without having to ‘transform overnight.’"