The Financial Conduct Authority (FCA) have outlined their proposed approach to regulating crypto assets in the UK, signalling a significant step towards a more defined and comprehensive regime.
Michael McCormick, financial services managing consultant at RSM UK, shares his perspective on what the consultation means for the market and why it represents a pivotal moment for the UK’s crypto ambitions.
Michael McCormick, financial services managing consultant at RSM UK, said:
“This consultation marks a turning point for the UK’s crypto regime. By bringing much-needed clarity to where the regulatory perimeter sits, particularly across activities like trading, custody, dealing and staking, the FCA is addressing one of the biggest barriers in the market today: firms not knowing whether they are in or out of scope.
“Set against the backdrop of MiCA (Markets in Crypto-Assets Regulation) in the EU, the UK is positioning itself with a distinct, Financial Services and Markets Act (FSMA)-based framework. Importantly, this is not just about compliance, it creates a real opportunity.
“Greater clarity should drive higher quality authorisation applications, enable credible firms to scale with confidence, and reinforce the UK’s position as a well-regulated crypto market.
“With the authorisation window opening in September 2026, firms that act early will be best placed to take advantage of that opportunity. Failure to act risks missing the cut off window to apply in February 2027.”
