Whether you’re a UK business that wants a quick refresher, a foreign company planning to offer crypto services in the UK, or just someone curious about how crypto is regulated in the United developments, helping you understand what’s required and what’s changing. Kingdom, this guide is for you. It provides a complete overview of the current rules and developments, helping you understand what’s required and what’s changing.
- The United Kingdom stands out as a country that has already introduced some rules for crypto assets and businesses, putting it in line with major economies like the EU, US, Singapore, and Hong Kong, which are also shaping their crypto regulations. The UK’s approach is unique for two main reasons: it takes things step by step (a phased approach) and updates existing laws to include crypto instead of creating entirely new ones.
- The UK’s first crypto regulations focused on preventing financial crime, similar to what other countries were doing at the time to follow FATF Recommendations. The EU adopted these recommendations through updates to its anti-money laundering directives, introducing rules for two key groups: crypto-to-fiat exchanges and custodial wallet providers. Before Brexit, the UK updated its Money Laundering Regulations to align with these EU requirements.
- The Financial Promotions Order (FPO) is a key part of UK regulation under the Financial Services and Markets Act 2000 (FSMA). Its main goal is to ensure financial promotions are clear, fair, and not misleading. Recently, the Financial Promotions regime was updated to cover qualifying crypto assets. This change was finalised and took effect on 8th October 2023.
- The UK updated the MLRs and FPO to include crypto assets. However, despite aiming to become a crypto hub in 2022, by 2024 there have been no major developments in regulating the broader crypto ecosystem. There were plans to introduce two phases of regulation, but the new government may change that approach.
By the end of 2024, there are still many unanswered questions that the industry is eager to have clarified. Several challenges remain that make it hard for businesses to establish and grow in the UK. Based on recent updates, we might see some changes as early as 2025, but it’s still unclear how they will shape the final rules. Despite all the uncertainties, one thing is certain: the UK must act quickly to avoid falling behind other countries that already have crypto frameworks in place.