UK’s FCA Will Force Crypto Firms to Protect Your Money or Face the Axe
The UK’s Financial Conduct Authority (FCA) has unveiled sweeping proposals to regulate stablecoin issuance and cryptocurrency custody services, potentially marking a significant shift in digital asset security protections for UK consumers.
Under the proposed regulations outlined in consultation paper CP25/14, firms providing cryptocurrency custody services in the UK or to UK consumers would face stringent new requirements designed to protect client assets. The proposals establish requirements for qualifying stablecoin issuers and requirements for qualifying cryptoasset custodians , creating a regulatory framework that extends beyond current anti-money laundering requirements.
Enhanced Asset Protection Through Trust Structures
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