FCA (Financial Conduct Authority)

The Financial Conduct Authority is the UK's financial regulator responsible for regulating the conduct of approximately 50,000 financial services firms and financial markets, protecting consumers, enhancing market integrity, and promoting competition in the UK's financial sector.

Following Brexit, the FCA has developed an independent UK approach to crypto regulation distinct from the EU's MiCA framework. The authority regulates crypto firms under the Money Laundering Regulations, requiring businesses engaged in crypto asset exchange or custodian wallet services to register with the FCA and implement robust anti-money laundering and counter-terrorism financing controls. The FCA maintains a public register of approved crypto asset businesses and has rejected approximately 80% of applicants due to insufficient financial crime controls.

The UK government's Financial Services and Markets Act 2023 grants the FCA expanded powers to regulate stablecoins used as payment instruments and broader crypto asset activities. The FCA is developing a comprehensive regulatory framework for crypto assets expected to come into force in phases through 2025-2026, focusing on custody standards, market abuse prevention, disclosure requirements, and retail investor protection. The authority has banned the sale of crypto derivatives and exchange-traded notes to retail consumers due to harm concerns.