UK Crypto Regulation Explained: FCA on Exchanges, Staking, and DeFi
The UK is moving to establish comprehensive regulation for its crypto market. The Financial Conduct Authority (FCA) has launched a broad consultation proposing new rules for crypto exchanges, staking services, lending platforms, and decentralized finance. This follows fresh legislation from the UK Treasury that incorporates crypto activities into the nation’s financial services framework, targeting full implementation by October 2027. Previously, UK crypto regulation was fragmented, focusing only on anti-money laundering and promotion rules without a unified structure. The proposed framework will regulate exchanges, enhance access to global liquidity, and introduce unique rules for staking, making the UK a leading jurisdiction in this area. The consultation, open until February 12, signals a transition from anticipation to industry preparation, potentially creating significant job opportunities. The UK’s approach aims to position it competitively between the EU’s MiCA regulation and US regulatory developments, influencing its potential as a global crypto hub.
