UK Tightens Crypto Industry Regulation
Date: 2025-05-12 Author: Gabriel Deangelo Categories: IN WORLD
The British government has presented updated regulations for the cryptocurrency sector, which cover a wide range of aspects, from capital requirements to operational resilience. Now all companies operating in this area are required to comply with new standards of transparency, customer protection, and internal control.
One of the key elements of the reform was the definition of new regulated activities. These included trading in digital assets, cryptocurrency storage services, and staking operations. These areas will be regulated under the expanded Financial Services and Markets Act 2000.
Special attention is paid to the regulation of stablecoins. According to the new classification, such tokens will be considered securities, and not electronic money. This means that stablecoins issued in the UK, backed by fiat currencies, must meet certain requirements for redemption and disclosure. Foreign stablecoins will only be able to trade domestically if they use platforms licensed by the UK regulator.
According to Bitget COO Vugar Usi Zadeh, these changes will open the door for many companies that have previously stayed away from the UK market due to unclear regulatory requirements. He stressed that now, in order to provide services — from trading to lending — it is necessary to obtain approval from the Financial Conduct Authority (FCA).
At the same time, Zadeh expressed concern that the exclusion of stablecoins from the Electronic Money Regulations (EMR 2011) could complicate their use as a means of payment, which could affect the daily practices of users.
Law firm Wiggin noted that the UK has opted for full regulation of cryptocurrencies as securities, in contrast to the more lenient approach adopted in the EU through MiCA. Such a move could strengthen the country's position as a financial hub, but at the same time tightens entry into the market.
The FCA has also previously said that even visual materials related to cryptocurrencies must be pre-approved. Despite the seriousness of the intentions, the economic secretary to the Treasury, Emma Reynolds, noted that the government does not yet plan to launch its own state cryptocurrency.
