United Kingdom
The UK Financial Conduct Authority (“FCA”) Executive Director of Payments and Digital Finance urged crypto firms to prepare for a comprehensive new authorization regime.
In remarks at the City & Financial Global event, Mr. David Geale said the FCA is methodically building a comprehensive regime—covering stablecoin issuance, custody, and prudential requirements—and that the time for firms to assess their readiness is now. He noted that the FCA is not simply imposing rules, but is actively seeking to foster a competitive market through collaboration. He argued that firms should view the forthcoming framework as an opportunity to build a trusted market, inviting them to engage with initiatives like the Regulatory Sandbox and a new stablecoin-specific cohort to test their business models.
Mr. Geale rejected a “lift and shift” approach to regulation, arguing that traditional financial rules are often unsuitable for decentralized technologies. He contended that a bespoke, proportionate framework is necessary to balance innovation with non-negotiable objectives like consumer protection, market integrity, and operational resilience. Mr. Geale stated that while the FCA is adapting its requirements (to, for example, extend operational resilience standards to crypto firms), it remains committed to core principles of good governance, transparency, and robust risk disclosures.
To ensure a successful transition, Mr. Geale called for continued international coordination and industry engagement. He highlighted the FCA’s close work with the Bank of England and global partners, including the U.S. through the Transatlantic Taskforce, to align the UK regime with global standards. He said this collaborative effort is critical to providing clear rules that drive growth and competitiveness, ultimately aiming to create a clean market that encourages innovation without compromising market confidence.
“Now is the time for firms to start preparing for regulation… Because once the regime is in place, you will need to be authorised by us to do business in the UK, and you will need to demonstrate that you can meet the standards we set.” David Geale, FCA Executive Director of Payments and Digital Finance
This article first appeared on Lexology | Source
