Must Read for UK Crypto Users: FCA Following US CLARITY Act Playbook

Ben Graham · ontem às 09:16

The UK’s Financial Conduct Authority (FCA) opened its final consultation on new crypto rules this week, putting the country one step closer to full licensing in 2026, echoing the US’s move to enact the CLARITY stablecoin Act for clearer crypto guidelines.

This is a significant moment for UK crypto following years of unclear rules and regulations, with the Government often criticized for killing blockchain innovation for firms while also treating everyday investors like shady criminals.

The UK's crypto "wild west" era is officially sunsetting.

The FCA has launched its final consultation step for the new regulatory regime, focusing on consumer duty, conduct standards, and safeguarding.

This marks the last major feedback window before the formal rulebook is… pic.twitter.com/605cm0R4Kc

— Conor Kenny (@conorfkenny) January 26, 2026

Crypto prices have begun the week in the red after UK crypto news broke, with Bitcoin now trading just below $88,000 following a 0.7% overnight drop as traders remain spooked by regulatory noise in the UK and around the world.

Zoom out, and this news fits a clear trend: governments now want crypto to follow the same playbook as banks and brokers, bringing it in-house for more oversight, rather than leaving it on the outside with a lack of transparency for market participants.

What Is the FCA Proposing in Simple Terms: Good for UK Crypto Investors?

This final consultation covers 10 areas, including how UK crypto firms treat customers, report activity, and protect user funds. One of the three key reasons for this consultation is given as ‘Support innovation and competition in the UK cryptoasset market’.

Given the UK’s lack of clarity and harsh treatment, multiple high-profile Web3 firms have moved to the UAE, Malta, and beyond. A move that supports new firms with fair and clear guidelines is a much-needed step for UK crypto.

For regular users, this matters because these rules shape who you can trust. Firms that fail to meet FCA standards may be forced to exit the UK market entirely, and as long as these rules are clear and fair, it can only be viewed as a positive.

The FCA consultation also states that the gateway will open in September 2026 for firms to apply for cryptoasset permissions.

BREAKING: The UK Just Moved to Fully Integrate Crypto Firms Into the FCA Rulebook pic.twitter.com/mGBJ61hLLB

— Ryan (King) Solomon (@IOV_OWL) January 23, 2026

Why the 2026 Licensing Deadline Matters: UK Crypto Licensing and US CLARITY Act Both Live This Year?

The FCA already set a rough timeline. Crypto companies will need formal authorization to legally operate in the UK starting in September 2026, and, if given the green light, will be able to operate under the FCA’s jurisdiction thereafter.

That date sounds far away, but businesses plan years ahead. Exchanges now face a choice: invest in compliance or leave. We saw a similar shakeout under EU crypto regulations, where smaller platforms struggled with costs.

For users, fewer platforms may mean less choice, although the upside is that the ones that stay should meet clearer safety standards. It could also entice new firms to spring up as the clear framework will be an appealing factor and a stark contrast to how the UK has operated in the past.

The future of regulated digital assets payments in the UK has arrived!

Ripple has officially secured approval of both an EMI license and Cryptoasset Registration from the UK's FCA.

Who better to explain what it means than our UK and Europe Managing Director @CraddockCJ.… pic.twitter.com/q2xyeJQXEF

— Ripple (@Ripple) January 9, 2026

EXPLORE: 20+ Next Crypto to Explode in 2026

How This Affects Stablecoins and Credit-Based Buying

One of the 10 focus areas mentioned in the FCA’s consultation is stablecoins, which are the leading topic of demand across all of crypto, spearheaded by the US and its ongoing CLARITY Act.

According to the FCA, issuers will need stronger proof that customer funds remain protected and that there are sufficient fiat reserves to cover the stablecoin offerings. That reduces the risk of collapse, but it creates barriers to new projects.

The FCA also wants stricter rules on buying crypto with credit. This is an attempt to counter UK crypto retail investors who take out loans and use credit cards to buy digital assets. Due to crypto’s volatility, this often backfires, leaving traders servicing a debt they can’t afford.

Credit-based buying has taken a back seat recently amid fear and uncertainty in the crypto market, with the Fear and Greed Index currently at ‘Extreme Fear’, underscoring this sentiment.

Crypto Fear and Greed Chart

All time 1y 1m 1w 24h

Will UK Crypto Users be Better off With FCA

Large, well-funded exchanges stand to gain. They already run compliance teams and can absorb extra costs, while smaller startups will feel more pressure. Some may take the cheaper option of blocking UK crypto users rather than adapt, similar to moves seen in the US CLARITY Act crypto regulatory framework.

Retail investors sit in the middle. Flexibility will be traded for transparent guardrails, which is often the stumbling block that keeps many more risk-averse investors from entering the space.

However, regulation does not eliminate risk entirely, as crypto prices will remain volatile, and there’s no refund option to protect users from bad trades.

What regulation changes are accountable? If a licensed firm misuses funds, the FCA can step in. That beats shouting into the void after a collapse.

The consultation runs until March 12. Expect louder debates as the deadline nears, especially from firms that dislike tighter oversight, with Coinbase’s public withdrawal of support for the CLARITY Stablecoin Act in the US being a prime example.

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