Regulatory Infighting Hinders UK’s Crypto Hub Ambitions
The UK government unveiled plans in April 2022 to make the country a global cryptoasset technology hub. But overlapping responsibilities among HM Treasury, the Bank of England and the Financial Conduct Authority have made it difficult to harmonize rules for stablecoins, the digital pound and tokenized deposits, leaving the UK’s regulatory progress behind the United States and European Union.
On May 20, 2026, the FCA said it had opened a market-testing program and pre-application support service, but the full crypto regulatory regime is not expected to take effect until October 2027. Industry participants say the lack of clarity could cost the UK companies such as Deribit. After Coinbase acquired Deribit for $2.9 billion, the potential loss in tax revenue was estimated at hundreds of millions of dollars.
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The history behind this eventNew UK Rules Signal Resolve to Build Cryptoasset Hub
The UK has sought to position itself as a global “cryptoasset hub” since 2022 but has faced industry criticism over its overly cautious regulatory pace. The latest measures mark the first time the country has translated that policy vision into substantive legal rules and a regulatory framework providing clear standards for market operations. The changes could rebuild industry confidence in the UK market and serve as a bellwether for global cryptoasset regulation.
The Bank of England issued a statement on the regulation of systemic stablecoins on June 22, 2026, followed by the Financial Conduct Authority’s final cryptoasset regulatory framework on June 30. The new rules require stablecoin issuers to hold reserve capital equal to at least 1% of the value issued. Companies may begin applying for authorization on September 30, 2026, and the regime will formally take full effect on October 25, 2027.
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