The UK is behind the EU and US in crypto regulation, with full implementation expected only by 2026. This creates uncertainty in the market.
Regulatory Overhaul Led by Treasury and FCA
The current regulatory overhaul in the UK is led by the Treasury and the Financial Conduct Authority (FCA). The Bank of England targets a 2025 decision on a digital pound. The new framework will integrate cryptoassets into mainstream securities laws by 2026.
Market Impact and Competitive Edge
The delay in implementing regulatory measures may negatively impact the UK's competitiveness. The active regulations in the EU highlight this urgency. Complexity and increased compliance costs create additional challenges for businesses.
Need for Accelerated Action
As other countries rapidly develop their regulatory frameworks, experts express concern that the UK may lose its financial leadership. Historically, regions changing their regulatory frameworks face temporary market retractions and increased compliance costs.
It may be critically important for the UK to accelerate its regulatory measures to maintain its financial position in the global crypto market.
