The UK crypto industry has a little over 12 months to set itself up for a more rigorous regulatory landscape, as noted by a high-ranking official from the country’s finance regulator.

Key Information:

• The Financial Conduct Authority (FCA) plans to begin certifying new crypto businesses by next year, following discussions with industry players and the establishment of new regulatory guidelines.
• A myriad of firms have struggled to register with the FCA’s current crypto database.
• Major players such as stablecoin issuers and crypto exchanges must brace for a more comprehensive regulatory environment.

In a conversation with CoinDesk, Matthew Long, the FCA’s director of payments and digital assets, revealed that the forthcoming ‘gateway regime’ set to roll out in 2026 represents a fresh authorization framework for crypto enterprises.

“We will implement a gateway for authorization. This process entails consultations, developing regulations, and ensuring appropriate legislation is in place,” Long mentioned.

This new system will significantly differ from the existing anti-money laundering (AML) framework. Companies like Coinbase, Gemini, and Bitpanda will transition from simple registration with the FCA to meeting the criteria for a more expansive suite of services requiring validation.

The FCA is expected to issue documents regarding stablecoins, trading platforms, staking, and more within this year. The new regulations are anticipated to take effect after final policy papers come out in 2026.

Since the crypto AML register commenced in 2020, the FCA has received a total of 368 applications from companies looking to comply; however, only 50 of those applications (14%) have secured approval thus far. A significant number of companies may have to reapply.

Future Regulations:

Long stated that impending legislation will clarify what qualifies as regulated activity, necessitating companies that partake in these activities to apply for authorization. The FCA remains committed to ensuring regulations for stablecoins are distinct, given their unique nature compared to traditional financial products.