The UK's Financial Conduct Authority (FCA) has announced its priorities for 2026 and is clearly focusing on growth, innovation, and technological adoption in the financial sector. In a letter to Prime Minister Keir Starmer, the FCA emphasizes plans to finalize regulations for digital assets, promote British stablecoins, and strengthen the country's digital financial infrastructure.
The letter explains the pro-growth policy of the regulator, including initiatives to:
To oversee digital asset markets and provide clear guidelines for crypto companies.
To allow asset managers to tokenize funds and use faster, more efficient payment systems.
To accelerate authorizations for new and growing businesses, provide better access to capital, and promote competition in payment and investment markets.
'This support for stablecoins and the digital financial infrastructure reflects a broader shift towards a more accessible, real-time, and collaborative financial system,' said Will Beeson, co-founder of the UK challenger bank Allica and former head of Standard Chartered’s digital asset platform. 'Clear regulation will help UK companies compete globally and supports genuine crypto applications, especially for SMEs.'
The FCA's plans for 2026 also include oversight of the introduction of variable recurring payments, support for SME lending through open finance, and promoting the tokenization of funds. With these steps, the aim is to retain the UK's leading financial position while responding to rapid technological developments.
UK Chancellor of the Exchequer Rachel Reeves and the ministry support this FCA policy, which provides clarity for businesses and fosters innovation while maintaining market integrity.
Based on the FCA's new initiatives, the UK government is preparing to place all cryptocurrency companies under existing financial oversight starting in October 2027, with legislation expected soon in Parliament.
According to Reuters, the law will largely be based on a draft bill from April, which outlines rules for crypto exchanges, custodians, and stablecoin issuers. A spokesperson for the ministry confirms that the law is intended to extend the existing financial regulations of the UK to the crypto sector and not to create entirely new oversight.
If this law is passed, it will mark a significant milestone for the UK's digital asset sector, as it finally provides clear regulation for both local and international companies.
UK opts for US-style regulation
By integrating crypto companies into the existing financial system, the UK is adopting an approach similar to that of the United States. This differs from the European Markets in Crypto-Assets (MiCA) regime, which is specifically designed for the crypto industry and has been in effect since this year.
Under the new framework, crypto companies must adhere to rules that also apply to traditional financial institutions, such as good governance, consumer protection, and market integrity.
Minister Rachel Reeves emphasizes that the law is intended to provide 'clear rules of the game' for the sector and to keep 'bad actors' out of the market.
There is appreciation from the sector for the clarity resulting from both the FCA's priorities for 2026 and the upcoming legislation in 2027. However, experts warn that overregulation could drive innovation to other markets.
'These steps are positive for strengthening the UK's position in global digital finance,' said Will Beeson. 'But regulators must combine oversight with flexibility to avoid stifling growth in this rapidly changing market. Proportionality and pace are essential so that companies can adapt without being forced into an 'overnight upgrade.'