The British government in the United Kingdom has announced plans to implement full regulations on %Cryptocurrencies starting in 2026.
Britain’s Financial Conduct Authority (FCA) has outlined a plan that includes consultations on crypto regulations ahead of “final rules” that will be implemented by the financial watchdog in 2026.
The FCA also plans to regulate %Stablecoins in 2025. Stablecoins are cryptocurrencies whose underlying value is tied to another asset, typically the U.S. dollar.
The British government says that crypto regulations are needed now that 12% of all adults in the U.K. own some form of digital assets.
The plan to fully regulate cryptocurrencies stands in stark contrast to the U.S., where president-elect Donald Trump is expected to take a laxer approach to regulating digital tokens.
The price of %Bitcoin (CRYPTO: $BTC) has risen more than 30% since Trump was re-elected Nov. 5 on expectations for less regulation and more widespread adoption of crypto.
On the campaign trail this past summer, Trump pledged to make the U.S. the crypto capital of the world through supportive regulations.
Currently, cryptocurrencies are completely unregulated in the U.K., making them a high-risk investment, according to the FCA.
“Our research results highlight the need for clear regulation that supports a safe, competitive and sustainable crypto sector,” said the watchdog in announcing its regulatory proposal.
The U.K. government has been flirting with crypto regulations for years. In 2023, the FCA tightened rules over the promotion and selling of cryptocurrencies.
However, until now, the British government has stopped short of proposing to bring in full market regulations pertaining to Bitcoin and other crypto.
Crypto bulls and advocates were quick to condemn plans for the U.K. to bring in stringent crypto regulations, with many taking to social media to voice their displeasure.
The price of Bitcoin has risen 109% this year and currently trades at $92,400 U.S.
