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UK crypto regulation faces key policy tests heading into 2026

Written by Isaac FrancisPublished dez. 29 2025Last Updated dez. 29 2025

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UK Finance said 2025 marked an intensive year of crypto regulatory development, driven by sustained engagement across its Stablecoins and Cryptoassets Working Group.

The industry body said discussions focused on market abuse controls, exchange obligations and requirements for stablecoin issuers managing backing assets.

UK Finance noted that most stablecoins currently support on and off-ramps for unbacked cryptoassets rather than acting as independent payment or savings instruments.

Regulators are increasingly treating stablecoins as money-like payment instruments rather than speculative investments due to their lower volatility and bearer features.

UK Finance said this classification debate is critical to designing proportionate rules that reflect real-world stablecoin usage.

Policymakers are attempting to balance innovation with consumer protection, market resilience and commercial viability for cryptoasset trading platforms.

It has been a tight balancing act between ensuring investors have the right protections while making it commercially viable for platforms to operate.

UK Finance said.

Proposed redemption timelines for systemic stablecoins have raised concerns over compliance with Know Your Customer requirements on secondary markets.

Firms are also analysing how sterling-denominated stablecoins issued in the UK will be regulated compared with overseas alternatives.

UK Finance warned that higher domestic compliance costs could encourage issuers to base stablecoin operations offshore.

Such an outcome could increase the use of non-sterling stablecoins within the UK financial system.

The group said this raises wider questions around monetary policy oversight and financial stability.

UK Finance said London’s status as an international financial centre will depend on regulatory clarity and competitiveness.

The framework is expected to land between US and EU approaches, blending innovation with risk controls.

The Labour government has expressed support for digital assets, but gaps remain between political intent and detailed regulation.

Multi-currency and multi-issuer stablecoins were cited as unresolved policy challenges.

Creating a level playing field between fintechs, banks and payment firms will be a major issue in 2026.

The industry is awaiting HM Treasury and Bank of England guidance on how stablecoin payments integrate with existing payment rails.

UK Finance said the coming year will be critical for shaping how crypto supports the real economy.