UK Crypto Rules: A Slow But Important Journey Towards the Future

A large part of the recent discussions about the crypto market has been about regulation or control. From what I have read in various places and the news, I understand that the UK is now slowly trying to bring crypto into a clear framework. Not suddenly, but not too loosely, they are moving forward in the middle way.

Looking at the proposals that the UK's Financial Conduct Authority (FCA) has recently put forward, it seems that the government is no longer just in the discussion stage. They are now moving towards real work. The goal is to ensure that there is innovation in the crypto market, but at the same time, the common people do not face unnecessary losses.

These rules will be fully implemented around 2027. Many may think that there is a lot of time left. But I think that this is actually a time for preparation. For those who run crypto exchanges, create trading platforms or work with stablecoins. This is a big signal.

The UK has not created a completely new separate law like Europe. Instead, they are adapting the previous financial rules to crypto. I personally find this very realistic. Because it will make it a little easier for banks, large financial institutions and crypto firms to understand the rules.

However, everything is not so clear. There are still many questions, especially about stablecoins and DeFi. For example, if a stablecoin is created outside the country, to what extent will the rules apply to it? These issues are not yet completely clear. DeFi is also a place where there is often no specific institution. Then, who will the rules apply to?

In my opinion, the most important thing is how realistic these rules will be. If the rules are too strict, many companies may leave the UK and move to other countries. On the other hand, if they are too loose, ordinary investors may be at risk. The FCA seems to be trying to strike a balance here.

Another thing I have noticed separately. Crypto is not confined to the borders of any country. The internet is the same everywhere. So what exactly it means to “work in the UK” will also be a big topic of discussion in the future.

Overall, I think the UK is now trying to move towards a mature position with crypto. This is not an overnight revolution, but a gradual process. There will be many changes, discussions and revisions on this journey before 2027. But one thing is clear: crypto is no longer something to ignore. Governments are now taking it seriously, and that is the biggest sign for the future of the market.