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.

But the wording from the financial watchdog should raise concerns about a possible expansive regulatory framework, one lawyer has said.

“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 in order to operate in the UK,” Bill Hughes, senior…