FCA Outlines Vision for a Trusted, Competitive and Innovative UK Crypto and Stablecoin Market
Speaking at City & Financial Global, David Geale, the FCA’s executive director for Payments and Digital Finance, affirmed that the UK is “open for business” as the country prepares to bring cryptoassets and stablecoins fully into its regulatory perimeter. While crypto today remains largely unregulated and carries high levels of risk, Geale emphasized that the UK is entering a pivotal phase: one where legislation, policy design and industry input are converging to build a balanced, future-ready crypto regime rooted in trust and integrity.
Geale framed the moment through a metaphor drawn from Howard Carter’s 1922 discovery of Tutankhamun’s tomb. As Carter saw the first glint of ancient treasures by torchlight, today’s industry stands at the entrance of a new financial frontier. Crypto, he said, evokes the identical duality: optimism from those who view innovation and evolution in digital money, and skepticism from those concerned about volatility, valuation challenges and security risks. With more than seven million UK adults having owned crypto, the need for a clear, proportionate regulatory structure is now unmistakable.
The FCA’s objective is to create a crypto market that supports innovation without compromising consumer protection. The regulator is already supervising crypto businesses for AML/CFT and financial promotions and is now preparing to expand its oversight. Geale urged firms to begin preparing for authorisation, noting that the FCA will support applications through targeted guidance, clear standards and free pre-application meetings as the new gateway opens.
Takeaway
Inside the FCA’s Regulatory Roadmap: Stablecoins, Custody, Prudential Rules and Sandbox Innovation
Geale detailed the , which includes extensive consultations already underway on stablecoin issuance, cryptoasset custody, prudential requirements and cross-cutting obligations. Upcoming consultations will address market abuse, admissions and disclosure frameworks, and consumer duty—setting the stage for a comprehensive regime. Once feedback is incorporated, the FCA will publish policy statements that will form the backbone of the new rulebook before opening the authorisation gateway.
To ensure the regime reflects and industry needs, the FCA is actively promoting innovation through its Regulatory Sandbox. Geale announced a stablecoin-specific cohort designed to let UK-based issuers test stablecoins in a controlled environment, while simultaneously giving regulators insight into practical considerations around transparency, technology and operational resilience. The first participant—a major firm testing a GBP stablecoin for payments—has already been accepted.
Alongside stablecoin testing, the FCA is supporting RegTech development. The regulator recently admitted Eunice to the Sandbox to explore how disclosure templates can improve investor understanding of cryptoassets. These experiments will influence future disclosure standards, forming part of a broader effort to align regulatory requirements with the complexities of decentralised systems while ensuring consumers receive clear, actionable information.
Takeaway
How the FCA Plans to Balance Innovation With Consumer Protection in a Global Context
The complexity of decentralised cryptoassets means that simply transferring traditional finance rules into the crypto space is not feasible, Geale warned. Challenges such as uncertain legal ownership, cross-border platform risks, and the lack of centralised counterparties require tailored approaches. To address these risks, the FCA is proposing to extend operational resilience standards—currently applied to banks—across all cryptoasset firms to ensure systems remain robust during outages, failures or cyber incidents.
Consumer protection remains a central pillar. The FCA maintains that transparency is essential, even if some argue that risk warnings deter participation. Clear information, Geale asserted, allows consumers to make informed decisions and understand the limits of protection. The regulator is also exploring diverseiated frameworks for wholesale and retail-facing firms and will continue collaborating with the Bank of England on systemic to ensure seamless coordination between regimes.
Globally, the FCA is engaging with international partners—including IOSCO, the Financial Stability Board, FATF and the standards and support cross-border cooperation. Geale emphasized that the UK is not falling behind the US despite talk surrounding the GENIUS Act; the UK has already consulted on prudential and issuer requirements and is moving rapidly toward a detailed, operational regulatory framework. Looking ahead, policy sprints planned for March will convene banks, payment firms and can improve trust, speed and interoperability across both retail and wholesale markets.
