- FCA initiates consultation on proposed cryptocurrency rules.
- New regulations expected by end of 2026.
- Crypto ownership in the UK decreases from 12% to 8%.
The UK’s Financial Conduct Authority initiated a consultation on Tuesday to propose comprehensive cryptocurrency regulations, coinciding with the government’s announcement of new industry rules effective October 2027.
The proposed rules aim to enhance market integrity, prevent illicit activities, and improve consumer protection in the cryptocurrency sector, with feedback open until February 2026.
FCA’s Regulatory Focus: Insider Trading to Prudential Norms
The FCA’s consultation focuses on measures such as preventing insider trading, managing risks in crypto firms, and setting prudential requirements. The agency aims to enhance protections in crypto lending and establish clear rules for listing crypto assets. “Provide clear rules of the road, strengthen consumer protections, and keep dodgy actors out of the market,” said Finance Minister Rachel Reeves. The consultation deadline is February 12, 2026.
Market changes will emphasize regulatory compliance in the crypto industry by finalizing rules by the end of 2026. The FCA’s approach seeks to address risks associated with crypto staking and propose financial safeguards against potential market manipulations.
Industry responses indicate a mix of anticipation and concern. Although no direct quotes from key figures have been recorded, Stani Kulechov, CEO of Aave, views potential tax-free DeFi elements as beneficial for developers, a “win” for developers and users regarding tax-free DeFi. Finance Minister Rachel Reeves seeks to protect consumers and eliminate market threats.
UK Crypto Ownership Down; BTC Hits Record Low Volatility
Did you know? In a span of one year, UK crypto ownership decreased from 12% to 8%, reflecting growing concerns over regulatory uncertainty and market volatility.
Bitcoin (BTC) is valued at $86,504.74, with a market cap of formatNumber(1726874736494, 2). It dominates 58.59% of the market. Volatility is highlighted by a 3.39% decrease over 24 hours and a 26.21% drop over 90 days, as reported by CoinMarketCap.
Coincu’s research indicates the FCA’s proposals could stabilize crypto markets by 2027. Historical concerns show consistent regulatory challenges facing digital currencies as nations strive to incorporate protective measures and innovation within the financial landscape. Poland’s veto of similar regulation is an example of national-level reactions to crypto policy changes.
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