Uk · DL News
‘Mother, may I?’ UK regulator’s proposed crypto rules too broad, cautions lawyer
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The concern, said Hughes, a US lawyer, is over wording that would make a large number of entities have to register with the FCA.
Key facts
- The UK’s economic and finance ministry, His Majesty’s Treasury of the UK Government, will have to approve of the FCA’s new rules
- Mathew Di Salvo is a news correspondent with DL News
- The concern, said Hughes, a US lawyer, is over wording that would make a large number of entities have to register with the FCA
- Hughes argued that this is broader than legislation approved in both the US and EU and if approved, could “would be the most expansive regulatory regime in terms of the entities that would need to register in order to operate with touch points
Summary
The UK’s Financial Conduct Authority has released a proposal for regulating crypto. - One lawyer says it would be too expansive in regulating the space. - The UK is set to debut a new crypto bill by October 2027. The UK’s Financial Conduct Authority this week released a proposal on how best to regulate cryptocurrencies in Britain, focusing on stablecoins, staking and trading platforms. “It does appear that the FCA is dead set on doing this — on making crypto in the UK a ‘mother, may I’ industry where everything in it needs to get permission to operate in the UK,” Bill Hughes, senior counsel and director of global regulatory matters at Ethereum software company, Consensys, told DL News.
Hughes added: “The UK’s regime is going to be more burdensome and more and more industry capturing than either what the EU has in place under MiCA or what the US appears to be putting in place under the Trump administration.” The lawyer argued in a post on X that while the US Securities and Exchange Commission had moved to allow non-custodial interfaces to facilitate token trading if done in a neutral fashion, the FCA was trying to push for the opposite with its wording. “Interfaces through which a user may buy or sell crypto would be deemed as offering a service that must be approved by the FCA (and follow all the rules in the FCA handbook on a going forward basis) before it can be offered to/accessed by the UK public,” he wrote. The UK’s economic and finance ministry, His Majesty’s Treasury of the UK Government, will have to approve of the FCA’s new rules.