UK to become ‘safe harbor’ for crypto with new draft rules — Experts

The UK unveiled a comprehensive regulatory framework for digital assets, aiming for global leadership in the sector. This framework brings crypto firms under regulations similar to traditional finance, prioritizing transparency and consumer protection. Six new regulated activities are included, encompassing trading, custody, and staking. Unlike the EU's lighter approach, the UK adopts stringent securities regulations, including capital requirements and governance standards. Industry experts like Circle and Bitget express optimism, viewing the clarity as beneficial for responsible innovation and attracting investment. The regulations require FCA approval for crypto services offered to UK users, giving firms two years for adjustment. Stablecoins are reclassified as securities, impacting issuance and circulation. The territorial reach extends to non-UK platforms serving UK retail clients, limiting exemptions. Specific rules cover staking and custody, though some DeFi aspects need further clarification. Potential side effects, like restrictions on retail participation and burdens on DeFi projects, require attention. Final regulations are expected in 2026, paving the way for a fully operational UK crypto regulatory regime.