UK's bold new crypto rules promise to unlock global trading, but huge compliance hurdles still threaten the rollout
The U.K.s Financial Conduct Authority (FCA) unveiled its cryptocurrency regulatory framework this week, winning early praise for taking an internationally connected approach, but industry participants said significant questions remain before Britain can establish itself as a global crypto hub. The FCAs package of rules creates a framework that preserves access to global liquidity through overseas trading venues and allows non-U.K.-issued stablecoins to circulate, various industry participants have highlighted. “The publication of the FCAs final crypto rules is a major milestone for regulatory clarity and a strong outcome for the U.K.s competitiveness in digital asset innovation,” Katie Harries, Coinbases head of policy for Europe, said in a Telegram message. Also, FCAs new measures around global liquidity and non-domestic stablecoins contrast with what many industry participants view as the more protectionist approach set out by the European Unions (EU) Markets in Crypto-Assets (MiCA) regulation, which effectively encouraged firms to ring-fence European operations and liquidity. Particularly, FCAs new Qualifying Cryptoasset Trading Platform (QCATP) model should allow overseas exchanges to serve U.K. customers through locally authorized branches connected to existing global trading infrastructure, according to Christopher Collins, a financial markets and regulation partner at Katten Muchin Rosenman. “The benefit of such an approach is allowing access for U.K. customers









