Crypto firms operating in the UK will be forced to prove they can weather market shocks and hold capital against risky assets under sweeping new rules announced by the Financial Conduct Authority (FCA).

The regulations increase supervision of an industry that has so far faced minimal oversight despite a boom in popularity tied to social media influencers and a legitimisation drive under US President Donald Trump.

A comprehensive framework

David Geale, the FCA’s executive director for payments and digital finance, framed the package as a first for the country.

He said:

“For the first time, we’ve got a comprehensive regulatory framework for crypto in the UK, one that covers how firms trade, how they…