UK FCA Seeks Views on Crypto Regulatory Proposals – Coincu

FCA announced feedback solicitation on crypto regulations on May 28, in the UK. The move targets the issuance and custody of stablecoins, impacting market competitiveness and investor protection.

FCA’s May 28 announcement seeks industry insights on proposed rules affecting stablecoins and custody. This follows a consultation paper published on May 27, emphasizing prudential guidelines for qualified crypto assets. Engagement has been ongoing since 2023, aiming to develop secure market structures.

UK’s Regulatory Approach: Enhancing Crypto Market Safety

Regulatory proposals aim to introduce stringent rules for stablecoin value maintenance and transparency. Custody services must ensure user asset accessibility. These changes highlight the UK’s cautious yet progressive stance toward crypto regulation, building on traditional financial frameworks.

FCA’s proposal has elicited varied responses from market players. Industry leaders express cautious optimism, acknowledging regulatory needs. Specific concerns about potential restrictions are evident, with participants questioning implementations. Feedback by June 13 will refine the forthcoming framework.

“The proposed rules aim to ensure that regulated stablecoins maintain their value and that customers are provided with clear information.” – UK Financial Conduct Authority (FCA) Representative, FCA

Implications for Bitcoin and Stablecoin Markets

Did you know? The UK government’s focus on crypto regulation began intensively in 2023, reflecting an evolving global trend toward structured digital asset management.

Bitcoin (BTC) is trading at $107,841.32 with a market cap of 2.14 trillion, as of May 28, 2025, according to CoinMarketCap. Its 24-hour decline stands at -1.98%, while it has seen a 13.87% rise over 30 days, indicating volatility amidst regulatory movements.

Coincu research suggests that the proposed UK rules could lead to enhanced investor trust in stablecoins, potentially boosting market integrity and fostering long-term growth. Data-driven assessments indicate potential effects on liquidity and investor behavior.