The financial watchdog has unveiled plans to implement comprehensive regulatory rules for cryptocurrency by 2026, responding to surging demand for the highly volatile bitcoin.
Bitcoin, the world’s largest cryptocurrency, has seen a significant rise in value since Donald Trump’s victory in the US presidential election earlier this month. It is currently valued at $92,000, down from a peak of over $99,000 just last week, though it has also suffered severe losses in past years.
Trump has pledged to position the United States as the global hub for cryptocurrency by introducing supportive regulations, driving Bitcoin closer to the symbolic $100,000 milestone.
The Financial Conduct Authority (FCA) today announced a roadmap including consultations on crypto regulation. Final rules are expected by 2026. By early next year, the FCA also aims to introduce regulations for “stablecoins,” typically pegged to traditional currencies like the dollar.
Cryptocurrency ownership has risen to 12% of adults in the UK, according to the FCA, which noted: “Currently, crypto remains largely unregulated in the UK and is considered high-risk.”
