By Michael Scott
The UK eyes new crypto regulations with the Financial Conduct Authority (FCA) set for 2026 enforcement.
The UK regulatory agency considers the initiative key to catching up with other nations in crypto regulations. The FCA plans to roll out consultations and discussion papers next month on market abuse, lending, staking, stablecoins and trading.
The strategic plans emerge as the UK seeks a competitive financial hub in the budding digital assets sector. The UK plans to rival other global leaders, including the European Union (EU), Hong Kong, the UAE and Singapore.
The strategic move by the UK aims to accelerate the regulation’s efforts to retain global relevance. This occurs as the EU’s Markets in Crypto Assets (MiCA) regulations become effective by the end of 2024.
FCA Pursues Crypto Regulation
The FCA identifies its regulatory priorities as the fiat-pegged stablecoins, custodial wallets and staking services. Also, the agency focus features comprehensive coverage and clarity on crypto services.
The UK aims to deliver a transparent framework to shield investors and bolster innovation. The FCA approach is essential to attract crypto-related businesses eyeing regulatory clarity. Additionally, the initiative will maintain the country’s competitiveness amid the rapidly evolving crypto sector.
A reflection on two-year activity using recent data confirms a 4% uptick in crypto ownership in the country. The data shows that approximately 7m adults hold crypto assets. The accelerated adoption rates make a case for the UK to establish a clear regulatory context to safeguard consumers. Additionally, clarity will stimulate sustainable growth in the digital assets sector.
The FCA move coincides with the likely pro-crypto stance in President Donald Trump’s administration. Recently, the GOP candidate expressed plans to establish a national Bitcoin reserve. This development adds urgency to the FCA efforts.
The recent global shifts towards establishing crypto-friendly policies place the FCA under immense pressure to develop a regulatory framework to keep the UK in pace with international standards. Also, the proximity to the EU bloc, where member states are set to leverage the world’s first comprehensive crypto regulation, explains the urgency.
The FCA assured collaboration in its roadmap. Besides the government, the regulator pledged to integrate the input from industry players, international partners, and consumers to deliver an effective crypto policy.
The UK Economic Secretary, Tulip Sidiq, affirmed that the Keir Starmer-led government is committed to delivering the draft crypto regulations soon. The announcement marks a major step by the administration towards reforming the crypto policy.
The financial watchdog will release the position papers on crypto-related issues early next year. However, the final policies are scheduled for 2026. Sidiq profiled the initiative as a reflection of the UK’s resolve to become a global digital asset regulation leader.
Morocco to Legalize Bitcoin and Crypto
The global shift towards crypto-friendly policies is evident in the efforts of the UK and Morocco. The latter announced plans to regulate crypto and Bitcoin following the 2017 ban. Besides, North Africa is pursuing the development of central bank digital currency (CBDC).
Morocco announced the bold step towards crypto regulatory clarity to deliver transparency in usage and CBDC exploration.
The initiative will help the country explore the viability of CBDC in Morocco. In particular, the country’s central bank governor, Abdellatif Jouahri, acknowledged the ongoing review of the draft law to govern crypto transactions.
A recent Reuters publication indicates that the Bank Al-Maghrib (BAM) governor stated that the conclusion of the review process will pave the way for the adoption of crypto law.
The announcement suggests a complete reversal in Morocco’s stance on crypto. The government has since 2017 maintained a ban on Bitcoin and other crypto to thwart money laundering, terrorism and illicit financing.
Despite the nationwide ban, the residents have maintained underground crypto usage. The high usage signals strong public interest in crypto assets.
Like the UK, Morocco aims for new legislation to clarify crypto-based transactions. Ultimately, the legislation will strike a balance in regulatory oversight amid the country’s huge demand for digital finance solutions.
CBDC Pursuit in Morocco
Besides overseeing crypto transactions, the BAM explores the potential of unveiling CBDC. In contrast to decentralized cryptos, the CBDC allows the central bank to exercise control over the currency in a way aligned with the country’s financial policies. BAM considers the CBDC to be a means to promote financial inclusion. Also, it will help modernize the financial infrastructure.
Morocco joins the global segment pursuing CBDC development. At least 134 countries have confirmed CBDC pursuit, a dramatic rise from 35 four years ago. It is noteworthy that 66 nations, including all G20 members, are within the advanced phases, including pilot and near-ready implementations.